Commentary

I6.134 Close companies and settled property examples

IHT, trusts and estates

I6.134 Close companies and settled property examples

I6.134 Close companies and settled property examples

Example 1—simple apportionment to trustees

The A Trust holds 25% of the issued share capital of company X Ltd, and 5% of the issued share capital of company Y Ltd.

On 1 January 2000, X Ltd sells to Y Ltd an asset worth £250,000 for £100,000 (an undervalue of £150,000).

M has an interest in possession which commenced before 22 March 2006 in one third of the A Trust, and the remaining two thirds are held on discretionary trusts.

The value transferred by X Ltd is apportioned between the shareholders.

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