Commentary

56 Capital gains tax on settled property

CHOSES IN ACTION vol 7
| Commentary

56 Capital gains tax on settled property

| Commentary

56 Capital gains tax on settled property

The assignment of an equitable interest may result in the settlement coming to an end and in such a case the trustees are treated as disposing and immediately reacquiring the assets in the trust fund at their then market value (a ‘deemed disposal’)1. Any charge that would otherwise result may be avoided if hold-over relief is available and a suitable election made.

There is a similar deemed disposal and re-acquisition on the coming to an end of a life interest in settled property because of the death of the life tenant2. In this case

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