Hi all
A life interest Trust has a capital gain of £2,900 so is exempt from CGT on the Trust tax return. There is only one life tenant entitled to 100% of the income, does the capital gain also need to be reported on his personal self-assesment? He already has other capital gains above the personal annual exemption, so the £2,900 would be fully taxable on the individual, with no relief for tax paid at source by the Trust. Could anyone confirm that the gain should indeed be included on the personal tax return also please?
Thanks
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No you cannot confirm, or no the capital gain in a life interest trust should not be declared on the personal self-assessment?
Ask yourself what a *capital* gain has to do with a person with a life interest in *income*, a gain on which the trustees are chargeable, and you have your answer.