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Home / Simons-Taxes /IHT, trusts and estates /Part I5 Settled property /Division I5.10 Income tax and CGT for trustees /Trustees—administration of trusts / I5.1032 Trustees' payment of CGT
Commentary

I5.1032 Trustees' payment of CGT

IHT, trusts and estates

Payment of tax—person becomes absolutely entitled to trust property

Where trustees have become liable to pay capital gains tax in respect of assets that have been transferred to persons absolutely entitled to them, there is provision for charging that tax on those persons in the event of default by the trustees.

It may happen, for example, that on the termination of a life interest (otherwise than on death) trust property vests in the remainderman or their successor in title. This may give rise to a charge to tax on the trustees1.

In such circumstances, where the tax is not paid within six months and the assets giving rise to the charge are transferred (not necessarily during the same period) to a person absolutely entitled to them, that

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