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Article: Capital gains tax and trusts: when dealing with trusts it is important to be aware of when a charge to capital gains tax arises.(Tax)
- Article from:
- Accountancy Ireland
- Article date:
- June 1, 2007
- Author:
CopyrightCOPYRIGHT 2007 Institute of Chartered Accountants in Ireland. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Trustees have a charge to capital gains tax when they make a disposal during the course of the administration of a trust or when there is an appointment from a trust to a beneficiary. This might seem obvious but what about the case where assets are held in trust for a minor until they reach a certain age or the termination of a limited interest?
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The capital gains tax provisions deal with two types of trust:
* Bare trusts; and
* Settlements.
In the case of both bare trusts and settlements, there is no charge to capital gains tax when there is a change in trustees. The trustees are deemed to be a ...