Appropriation to Beneficiaries

My first post. Is it possible to appropriate land to beneficiaries while retaining an interest for the Estate making use of the estate’s annual allowance as well as the beneficiaries allowances?

Deborah Clark
Moore Stephens LLP

Subject to all the usual considerations, it is perfectly possible to appropriate beneficial shares in land to beneficiaries without exhausting the whole beneficial interest in it - thereby utilising an extra “annual allowance”.

Mark Walker
Anglolex Ltd.

Does this not raise the issue of the possible application of Crowe v Appleby?

Malcolm Finney

According to Trust Taxation by Chamberlain and Whitehouse, HMRC do consider that Crowe v Appleby applies to partial appropriations by executors but the authors strongly argue that it does not and that the decision
applies only to trusts.

Malcolm Gunn

I think it is perfectly fine too however if the beneficiaries to whom you are appropriating the land to, are married then they can gift part of their share to their spouse (through a deed of gift)
enabling further extra CGT allowances.

Ruksana Kaskar
Hamilton Davies LLP