Have Tax Questions? Ask a Tax Expert for Answers ASAP
Discretionary Trust. The original benefactor stated in her will that income from a small amount of capital and the use of a house for free should be enjoyed during his lifetime of a named beneficiary and when that named beneficiary died, the house and small amount of capital should then be returned to the Trust for the benefit of four named beneficiaries. The original benefactor died in January this year. The house which was purchased in September 1994 has just been sold. The proceeds of the capital and from the house is about to be distributed to the four beneficiaries. I need to know how much money the trust should retain to pay the tax. Thank you for your assistance
Thank you your information is helpful. When you say the annual exempt amount is 5.5K, presumably that means that as the shares bought in the Trust and the house owned by the Trust were acquired on the death of the benefactor in Oct 1994 i.e. 20 years ago, then the total exempt amount is £110,000?
I presume that the £110,000 exemption would apply to the total capital gain, or could it apply to the gain of the house value and then again a further £110,000 to the gain of the shares sold?
I apologise for my delay in making this further query, I had to go to the dentist to have a wisdom tooth removed, this completely knocked me out.
Martin Turner Tel. 01892 783803
Please confirm that the annual capital gains tax exemption is only £5.5 K?
Someone I know with no qualification said he was pretty certain that it was double this amount??
Tel. 01892 783803