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Ending IIP (IPDI) Trust within lifetime

smithsmith Member
in Technical stuff

Morning all,
I'm trying to find something I can save to a file regarding this...

Client is a life tenant of an IPDI trust and are looking to forgo their interest in favour of the remaindermen.

Obviously it will be a transfer of value from an IHT perspective, but I'm trying to cover off CGT as it will be a disposal for CGT purposes. I think however that holdover relief will be available under section 260, but I can't find anything specific anywhere on this - though this could be my googling skills which are lacking...

Any help would be greatly appreciated.
Thanks
Tony

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Comments

  • richardgoughrichardgough Member

    Holdover relief (for non business / agriculture assets) is only available if the transfer is subject to lifetime IHT -i.e. it would need to be a chargeable lifetime transfer, not a PET. [The CLT just neds to 'exist'; it does not need to create an IHT bill]

    This means it depends on the trust wording regarding the remaindermen - is this a discretionary class, or are the remaindermen absolutely entitled to their respective share?

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