Indemnity on the distribution of shares and SDLT


I am about to wind up a discretionary trust and part of the trust fund, held in a share portfolio, is to be transferred in specie to a beneficiary. I am trying to decide which precedent to use for the Deed of Advancement and want to take an indemnity from the beneficiary but I have read that care needs to be taken as an indemnity could be construed as monetary consideration for SDLT/ SDRT purposes. Can anyone help me with making sure I don’t fall foul of SDLT while still protecting the trustees?

Justine Alford
Burningham & Brown Solicitors

(Malcolm Finney) #2

Doesn’t FA 2003 Sch 4 paras 16A and 16B preclude such an indemnity constituting chargeable consideration?

Malcolm Finney