Capital gains tax (CGT)
Where there is a transfer of property which is exempt from IHT as a result of the property going into a maintenance fund, CGT hold-over relief can be claimed1 (by the transferor alone) so that no CGT has to be paid and the trustees carry forward the CGT base cost of the transferor.
For a summary of this type of hold-over relief see I3.613, I3.613A. This is also the case where interest in possession settled property passes into a maintenance fund2, including a case where such settled property passes into a maintenance fund within two years of the death of a person entitled to an interest in possession in it, in circumstances that IHTA 1984, s 57A (see I7.544) applies3.
Hold-over relief is similarly available where property is transferred out of a discretionary trust to a maintenance fund, including where it
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Web page updated on 17 Mar 2025 17:03