Trustees are sometimes treated as having made a disposal of the trust property even if they have not sold or transferred the property. You will need to consider the capital gains taxation of the trustees where they make such deemed disposals.
Trustees are deemed to make disposals of the trust property where:
- •
a beneficiary becomes absolutely entitled to the trust property
- •
when certain interests in possession in the trust property come to an end
The following discussion of the main deemed disposal scenarios is summarised in the Flowchart ― disposals and deemed disposals.
Beneficiary becoming absolutely entitled
A beneficiary becomes absolutely entitled to trust property where he is able to dictate how the trustees are to deal with the property (eg by demanding that the trustees pass ownership of it to him). This will be the case in one of the following:
- •
the trustees have exercised their powers of advancement or appointment of trust capital
- •
an interest in possession comes to an end and the remainderman of the trust
Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Access this article for free with a 7 day trial of Tolley+™ Guidance and benefit from:
- Expert practical tax guidance
- Ready-made templates, step-by-step-guides, interactive flowcharts and checklists
- The latest news updates, insights and analysis
Popular Articles
Special rate pool and long life assets
Special rate pool and long life assetsSpecial rate poolExpenditure on some types of plant or machinery must, if neither annual investment allowance (AIA) nor first year allowances (FYAs) are available, be allocated to a ‘special rate pool’. Expenditure to be allocated to the special rate pool
Qualifying charitable donations
Qualifying charitable donationsCompanies can obtain corporation tax relief for qualifying payments or certain transfers of assets to charity under the qualifying charitable donations regime. Definition of qualifying charitable donationThe definition of ‘qualifying charitable donations’
Non-business expenses
Non-business expensesIntroductionIn order for an expense to be tax deductible it must be incurred because of an employee’s employment. Any non-business related expense is, therefore, not relievable except in some very particular circumstances.This guidance note deals with three separate issues. The
