How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4938
Type Your Tax Question Here...
bigduckontax is online now

I am looking at an offshore UAT trust portfolio of

This answer was rated:

Hi I am looking at an offshore UAT trust for my portfolio of properties in Belize whats would the capitol gain liability be

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

Where do you reside? Once I know this I will be able to advise you further.

Customer: replied 1 year ago.
Hi thank you for your response, I reside in the UK and domiciled in the UK. Just for further information, i have been pitched by an introducer for a remuneration trust for a trust ( supplied by Buckingham wealth the trust structure from Paul Baxendale-Walker whole i have researched at length) he owns the IP on and wrote a reference book on tax trust remuneration law that seems is a go to reference work. The system v]claims that via a PMC in the UK and fiduciary agreement from the trust I am able to manage and control the assets and amy rental income free of CGT and IHT. It seems that HMRC from my research I cant find any challenges from HMRC on this structure so attempting to find out if it is a legal structure.Regards *****

I concur with your view that you escape both CGT and IHT through a UAT, but I cannot help thinking that this loophole is ripe for closure.

Remember that when you transfer your assets into the UAT then a CGT charge will apply as the transaction would be deemed as a disposal and anything over the Annual Exempt Amount (AEA) 11.1K exposed to CGT.

Customer: replied 1 year ago.
Hi thanks, ***** ***** saying that it is CGT free going into the UAT is that incorrect.

No Beric; what I am saying is that although once in the UAT it will be tax free, on transfer into the trust the donor will be liable to CGT on any gain made between their original purchase price plus costs plus improvements and the disposal price less transfer costs. The transfer would be assumed to have been made at current market price.

Please be so kind as to rate me before you leave the Just Answer site.

bigduckontax and other Tax Specialists are ready to help you

Thank you for your support.