The following Trusts and Inheritance Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
The gain on the sale of aresidential property (together with its grounds) held in trust will be wholly or partly exempt if, during the period of ownership by the trustees:
TCGA 1992, s 225
A similar relief is available on the disposal of aproperty by the personal representatives of adeceased person. See the Capital gains tax during administration guidance note.
The relief is only available to trustees if aclaim is made. It does not apply automatically as with individuals. A claim must be made within four years of the tax year in which the disposal occurred.
The so-called principal private residence (PPR) relief is an exemption rather than arelief. Accordingly, any loss to which the exemption applies is not an allowable loss, just as any gain is not ataxable gain.
If again arises, the relief is calculated in the same manner as that for individuals, except that conditions relating to the occupation of the residence apply to the beneficiary. Therefore, where aproperty has been occupied, throughout the period of ownership by the trustees, by abeneficiary entitled to occupy it under the terms of the trust, the gain will be fully exempt. As for individuals, the relief may be restricted if:
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