Trusts & CGT

Question 1

Bare

Answer 1

• Liability on beneficiary

* No holdover relief as PET (unless business asset)

Question 2

IPDI / IIP

Answer 2

• Liability on Trustees at 20% or 28% property
• £6,000 exemption
• Potential holdover relief

Question 3

Discretionary

Answer 3

• Liability on Trustees at 20% or 28%

* £6k exemption

Question 4

Trust IHT Strategies

Answer 4

Bare

• PET
• Assets in beneficiary’s estate

IPDI

• Assets in Life Tennant’s estate
• CLT if interest transferred to new life tenant

Discretionary

• CLT
• Assets in no-ones estate
• Periodic and exit charges
• Holdover relief