Deed of Appointnment for CGT

Hi, i am looking to appoint funds from a Trust over two years for CGT purposes, can i use one Deed for the two appointments or would it be advisable to executor two separate trust deeds for the two tax years? Thank you

Use separate deeds for each year’s appointment.

I believe that exercising an appointment in advance may be a breach of trust or at the very least open the door for it to be challenged by any beneficiary that feels it is not in their interests

Circumstances can change before the date of the intended second appointment which may mean it needs to be reconsidered.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals

Thanks Paul

Kind Regards

Lee

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A deed of appointment cannot be executed now to operate retrospectively. It can be executed now to operate prospectively. If you wish to make an appointment of an asset now and after 6 April 2022 e.g. to secure a part disposal in one tax year and another in the next you could do that today and in one document.

You would have to do so in the full realisation that an irrevocable deed is just that i.e. no scope for changing your mind. It may or may not be better to wait and look at things at around 1 April 2022. This is almost totally fact specific. A change in this particular tax principle part way through a tax year would be unprecedented.

I would favour two documents. This is less likely to test the IQ of the person at HMRC who has the task of understanding what is going on and save the client your costs in having to explaining it.

Jack Harper

Thanks Jack

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