Can anyone clarify if when appropriating assets to a charity prior to sale to avoid CGT (as the charity is exempt from CGT) is there specific wording that has to be included in the contract and transfer document or is the deed of appropriation sufficient together with a S119 report?
Additionally, is a CGT return still required even though the transaction then becomes exempt under the new return rules ?
No return is required as disposal will be an “excluded” disposal FA 2019 Sch 2(2)(c).
Malcolm Finney
Thank you, thats very helpful.
@MalcFinney any advice regarding the appropriation and sale as bare trustee?
Others are more qualified than me to advise on this part of your post.
My understanding is that no specific wording or formalities is/are needed wrt the appropriation by the PRs in favour of the charity who will then hold the assets as bare trustees for the charity. The PRs are then able to sell on behalf of the charity as they direct. No CGT charge, of course, arises as the charity exemption will apply.
I don’t think a s119 report is strictly necessary unless the asset is land in which case prior to any agreement to sell s119’s requirements must be satisfied.
May I suggest you await any further feedback from someone more qualified than me but hope the above is of some help.
Malcolm Finney