The following Trusts and Inheritance Tax guidance note Produced by Tolley in association with Paul Davies at DWF provides comprehensive and up to date tax information covering:
‘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 that would otherwise have arisen.
Hold-over relief can be of two types:
‘business’ hold-over relief on disposals of certain types of business assets
‘general’ hold-over relief on certain disposals that give rise to an IHT charge (plus some other disposals by trustees)
The relief is optional and has to be claimed.
If both types of hold-over relief are available in relation to a disposal, then general hold-over relief must be claimed instead of business hold-over relief.
Hold-over relief is available to trustees but not to personal representatives. When personal representatives transfer the assets of the estate to the persons entitled to them, no gain will arise in any event, and the legatees will receive the asset with a base cost equal to that at death.
The assets that qualify for business hold-over relief are:
assets or interests in an asset that is used for the purpose of a trade profession or vocation by the trustees, or by a beneficiary who has an interest in possession in the asset
shares or securities of a trading company or the holding company of a trading group, if either:
the shares are unquoted, or
the trustees hold at least 25% of the voting rights of the company concerned
agricultural properties that qualify for relief from IHT but is not otherwise business property
The relief is discussed further in the Business asset
**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
Normal due dateSmall companies (including marginal relief companies) are required to pay all of their corporation tax ― nine months and one day ― after the end of the chargeable accounting period.For example, where a chargeable accounting period ends on 31 December 2018, the due and payable date for
IntroductionUK resident individuals who are non-UK domiciled can benefit from the remittance basis of taxation. The remittance basis allows for relief from UK taxation for non-UK sources of income which are not brought in (or remitted) to the UK. A remittance is any money or other property which is,
Duty to prepare trust accountsUnder the laws of England and Wales, trustees have a duty to account to the beneficiaries for their financial administration of the trust fund. This duty is established by a substantial body of case law. In the case of Armitage v Nurse, Millett LJ stated:“Every
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.