We have a client that has settled private company shares into Trust. We are going to claim Holdover Relief in respect of the gift. The Trust is non-taxable and therefore would not normally be required to register on the Trust Register for a UTR.
We would like to hear if other professionals have come across a similar scenario.
Is it sufficient to detail the URN number and make a disclosure note on the Holdover Claim explaining that the Trust does not have a UTR as it is not taxable and none of the conditions in CG66883 - Relief for Gifts of Business Assets: The Donee - HMRC internal manual - GOV.UK are met? Or do we need to register the Trust, obtain a UTR and detail the UTR on the Holdover Claim for the relief to be valid?
The form says “If the transferor or transferee has no Unique Taxpayer Reference (UTR), please explain why on an attached sheet.” so I assume you can just include a note to the effect that the Trust is not taxable and so has a URN rather than a UTR.
Hi Andrew
Thank you for your response. Yes, this is our assumption. However, it would still be helpful to know if anyone has received rejected claims on this basis as we have a lot of CGT at stake.
This is how we have filed in the past for a significant number of trusts, all with material amounts of tax at stake.
We have also filed pre URN days on this basis too, with a covering explanation.
We have had HMRC queries over the status of some of the underlying trusts, typically to ask us to confirm the settlor has no interest in the settled property, and that the trustees remain UK resident, but otherwise HMRC have to date always accepted the filing position on this basis with no UTR.