The following Trusts and Inheritance Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note should be read in conjunction with the Appointment of trustees guidance note, which considers the office and appointment of trustees generally, as well as with the Trustee’s powers and duties guidance note.
This guidance note considers the instances where trustees might step down, or be removed or replaced.
When a trustee dies in office, the remaining trustees carry on unaffected. There is no need to record the trustee’s death in a deed; though if he is replaced, it should be noted as a recital in the deed affecting the new appointment.
It is important for the remaining trustees to store a copy of the deceased trustee’s death certificate with the trust deeds to show why he is no longer a trustee. This is particularly relevant in the event of a sale of trust property, and will be necessary to prove that the selling trustees have good title to the trust assets.
There will often be a clause in the trust instrument governing the retirement of trustees but if not, the statutory provisions in the Trustee Act 1925 will apply. Different clauses govern the retirement of trustees depending on whether the outgoing trustee is being replaced or not.
Where a new trustee will be appointed in place of an outgoing trustee who wishes to retire, Trustee Act 1925, s 36 will apply. A new trustee can be appointed by the persons nominated in the trust deed, or by the continuing trustees.
Where an outgoing trustee who wishes to retire is not being replaced, Trustee Act 1925, s 39 applies. This section allows retirement as long as:
following the outgoing trustee’s
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
‘Hold-over’ relief allows for the deferral of a gain that would otherwise arise in relation to a disposal. No capital gains tax (CGT) is due in respect of the disposal, but the base cost of the asset for the transferee for the purpose of a future disposal is reduced by an amount equal to the gain
This guidance note explains the general rules surrounding the availability of indexation allowance on the disposal of company assets and provides information on the rebasing rules for assets held on 31 March 1982. For an overview of the general position regarding company disposals, please refer to
The basic rule is that all benefits provided to an employee by reason of their employment are taxable unless there is a specific exemption or other rule that means they are not chargeable to tax.ExemptionsThe main exemptions for employee benefits are in ITEPA 2003, ss 227–326B (Pt 4).Below is an
Employee benefit trusts (EBTs) are commonly used to support employees’ share schemes and to provide other benefits to employees in the form of pensions and bonuses.Their use has been significantly affected by the introduction of the disguised remuneration rules. Although the statutory exclusions
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.