Commentary

Section I4.435 Section 144 distributions and other taxes

IHT, trusts and estates

Section I4.435 Section 144 distributions and other taxes

I4.435 Section 144 distributions and other taxes

CGT

Unlike IHTA 1984, s 142, s 144 has no corresponding provision for CGT purposes (see I4.421) and therefore the distribution of property settled by a Will within two years of a testator's death may be a disposal for CGT purposes.

For example, if an individual becomes absolutely entitled to the property as against the trustees or a new, separate settlement is created, this disposal may give rise to a chargeable gain (see I5.912). If there is a CGT charge, and if relief is given from an IHT charge by s 144, hold-over relief

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