SETTLOR-INTERESTED TRUSTS
09/04/2009
Settlor-interested trusts treat as the income of the Settlor the trust income and the provisions for these anti-avoidance measures were changed to ss. 619 – 648 Income Tax (Trading and Other Income) Act 2005 [ITTOIA 2005]. If the trust is settlor-interested for CGT the gains of the trust will be assessed on the Settlor and not on the trustees. The effect of a trust being settlor-interested for CGT is to deny hold-over relief on a transfer into trust of chargeable assets.
To continue reading this item, you need to be a subscriber. There are many great benefits to become a member of LawSkills. Why not sign up for a free one day pass?
