SDLT on discretionary trust appointments

Trusts Discussion
1

I have a discretionary trust being wound up and all assets appointed to one beneficiary.
The beneficiary is taking over all secured loans and the inheritance tax liabilities currently due in the trust. For SDLT is consideration just the loans or also the IHT liabilities which is also the assumption of debt? It appears to be the latter but most examples I can find only mention secured debt.

Julie Jarvis
Baldwins

2

Any IHT paid/payable will not count as chargeable consideration for SDLT purposes (FA 2003 Sch 4 para 16A).

Malcolm Finney

3

The query refers to IHT “liabilities currently due” so it isn’t clear exactly what these are. For example if they refer to a ten year charge liability which has arisen but hasn’t yet been paid, it appears the legislation referred to in the reply won’t be applicable.

Jon Zigmond