Splitting a trusts annual CG exemption

Is the usual CG annual allowance for trusts still split when the settlor dies?

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Simple (I hope) question. Settlor created three trusts in their lifetime so usual AE for trusts (£6000) was divided by three in 2019-20 ie it was reduced to £2k. Settlor died on 5 April 2020. Is the AE still divided by 3 in 2020-21 or does the death change it?

If possible please reference HMRCs specific guidance on this.

 

Thanks

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By Tax Dragon
06th May 2020 11:55

Sorry, don't know the specific guidance (I'm sure there is some), but looking at the legislation...

I'd suggest that the "is" in para 6(5) Sch 1C TCGA is matched by the "is" in s68A(1)(b).

(I suspect that the former "is" is at the heart of your question, but do say if not.)

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By Tax Dragon
07th May 2020 11:25

Bored, so have dug up the HMRC guidance for you.

CG33220 says, "a deceased settlor continues to be regarded as a settlor."

It's under a heading about s68A [which is itself beneath the sentence, "in one or two areas discussed in subsequent paragraphs the law has been changed slightly"], so I am intrigued to know whether the answer was different before FA2006, which brought that definition in. Based just on reading said page of the manual, I might conclude it was.

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Replying to Tax Dragon:
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By alisonis
07th May 2020 14:42

Thank you very much!!

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