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First there could be a tax charge taking the shares out of the trust so what type of trust is this ? As its the trust that you pay the capital gains tax arising
Do a care or discretionary trust - when did it startThanks
Apologies so it is a bare of discretionary trust ?
I am afraid it will the capital gain arises on the trust
You have just told me its a discretionary trust
If assets are taken out of a trust
The trustees usually have to pay the tax if they sell or transfer assets on behalf of the beneficiary.
There’s no tax to pay in bare trusts if the assets are transferred to the beneficiary.
Sometimes an asset might be transferred to someone else but Capital Gains Tax is not payable. This happens when someone dies and an ‘interest in possession’ ends.
Neither of these applies so capital gains are due
The TRUST pays capital gains not you as beneficiaries- the trust is in the Uk so yes capital gains are due on taking out this money from a live trust yet to arrive at its fruition
You are very welcome - the point of a trust is to avoid Inheritance tax by remaining intact until the death of the creator any movement or sale of assets before that time will give rise to charged on the trust
You are very welcome