CGT when assets become trust property
CGT when assets become trust property—general
A transfer, whether revocable or irrevocable, of property into settlement is a disposal of the entire property that becomes the settled property, whether the transferor is a trustee, or the sole trustee, of the settlement, and even if they have some interest in the settlement as a beneficiary1.
There is a disposal by the transferor (ie the settlor) of their whole interest in the property transferred to the trust. The settlor's disposal proceeds and the trustees' acquisition cost are deemed to be equal to the market value of the asset(s) transferred into the trust2.
Holdover relief is often available for the settlor when they set up the trust (unless they can potentially benefit from it, ie it is settlor interested – see below) if the transfer
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 17:23