A transfer of property into settlement is a disposal for capital gains tax purposes. This is the case even where the transferor is a trustee of or beneficiary under the settlement (see ¶357-175). As the settlor and trustees are connected persons (see ¶357-050), the transfer will be deemed to be made at market value (see TCGA 1992, s. 17(1), 18(1), (2) and ¶518-900).

Such transfer will be a disposal for capital gains tax purposes irrespective of whether the transfer is revocable or irrevocable.

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.