CGT AE for trust with two settlors

Trusts Discussion
1

I am dealing with a CGT disposal by a trust which has two settlors - it is the Mr and Mrs X settlement. Mr and Mrs settled a residential property (previously owned jointly) in to trust about 20 years ago.

The property has now been sold. I wanted to confirm whether the trust has a single trust AE for CGT (ie half the personal AE) or whether - because we have two settlors, there is any ability to claim two trust AEs.

Just to clarify it is a single trust with a single trust deed.

Is anyone able to confirm for me. I very much suspect we have just one trust AE at our disposal but am having difficulty finding a definite position on this.

2

Unlike wrt IHT (IHTA 1984 s 44(23)) there is no CGT equivalent.

Based upon your post it seems more than likely there is only one trust, albeit two settlors. Hence, only one AE available on the sale.

Although not overly useful see para 33280 in HMRC’S CGT manual.

Malcolm Finney

3

Thank you

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4

I suggest you might also look at Taxation of Chargeable Gains Act 192, schedule 1, para 2(6).

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals

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5

Paul’s reference is to the pre FA 2019 version of TCGA 1992.

His reference is now to TCGA 1992 Schedule 1C para 6.

Malcolm Finney