Discretionary Trusts

tanit

I have a query regarding trusts that I do not seem to get an answer for. When you set up a trust intervivos there is a CGT event on the settlor, disposal at market value of assets into the trust.

1. Could the settlor qualify for Retirement Relief under S 598 if over 55 years (if he would qualify if the disposal was taking place to a third party that is not a trust)?
   
2. If not could the disposal qualify for S 104 CATCA 2003 for the offset of CGT/CAT on the same event?

I can find information about that being the case on the assignment of assets from the trust to beneficiaries (S 104) but I cannot find anything conclusive for the previous two questions.

tax_tutor1

Yes he/she could qualify for CGT RR on t/f to DT inter vivos of qualifying assets. Stamp duty would also arise for the Trust on the transfer unless the asset was exempt.
No to second question as no CAT would arise on the transfer to the DT. CAT would only arise when assets are appointed out of the D Trust.

tanit

tax_tutor1 wrote: »

Yes he/she could qualify for CGT RR on t/f to DT inter vivos of qualifying assets. Stamp duty would also arise for the Trust on the transfer unless the asset was exempt.
No to second question as no CAT would arise on the transfer to the DT. CAT would only arise when assets are appointed out of the D Trust.

Thanks a million and thanks for pointing out the CAT issue (I had forgotten again about it the CAT in Fixed and Discretionary):o
I also assume that Entrepreneur Relief would apply to the disposal to the trust. It's because I have gone through a couple of Trust questions and they don't point the thing about the CGT reliefs.

tax_tutor1

tanit wrote: »

tax_tutor1 wrote: »

Yes he/she could qualify for CGT RR on t/f to DT inter vivos of qualifying assets. Stamp duty would also arise for the Trust on the transfer unless the asset was exempt.
No to second question as no CAT would arise on the transfer to the DT. CAT would only arise when assets are appointed out of the D Trust.

Thanks a million and thanks for pointing out the CAT issue (I had forgotten again about it the CAT in Fixed and Discretionary):o
I also assume that Entrepreneur Relief would apply to the disposal to the trust. It's because I have gone through a couple of Trust questions and they don't point the thing about the CGT reliefs.

Yes the T/f (a disposal) could qualify for ER s597AA obviously if q.conditions are met. Shorter ownership period being the main plus here.

tanit

tax_tutor1 wrote: »

Yes the T/f (a disposal) could qualify for ER s597AA obviously if q.conditions are met. Shorter ownership period being the main plus here.

Thanks a million