Commentary

67 Powers of appointment in relation to capital gains tax

POWERS OF APPOINTMENT vol 33
| Commentary

67 Powers of appointment in relation to capital gains tax

| Commentary

67 Powers of appointment in relation to capital gains tax

On the occasion when a person becomes absolutely entitled as against the trustees to any part of settled property, the assets to which that person becomes entitled are deemed, for capital gains tax purposes, to be disposed of by the trustees at their market value, and immediately re-acquired by them as bare trustees or nominees for that person1. Therefore, if a power of appointment is exercised so as to confer an absolute entitlement to settled property as against the trustees on the appointee, capital gains tax on that deemed disposal

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