I am looking for some assistance with regards to a Trust and Estate Tax Return
I have a client who transeferred a property and land to a discretionary trust in 2010. The resluting capital gain of the transfer was declared on the 2011 self assessment and CGT paid.
The property and land have since been sold and a loss was made as it was sold slightly less than the market value figures used for the transfer.
I am now completing the Trust and Estate Tax Return which is something I am not familiar with. I would assume that the loss made by the trust cannot in any way be offset to the personal CGT liability which has been paid ?
There doesn't appear anywhere on the form to complete details and workings, i.e. Disposal cost, costs of disposal, initial cost etc. to achieve the loss figure. Am I to assume I just do the workings and include only the loss figure.
I would very much appreciate help in this matter as I have not before been involved in CGT with regards to a trust.
Many thanks
Valerie
__________________
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
A) CGT losses can only be offset against future CGT gains.
B) You include the loss figure on the form, showing its to be c/fwd and send in the computation along with the form. The CGT guidance should clear the logistics up for you.
The link is very helpful. I think it is now clear in my head. For some reason I was wanting to include the whole disposal amount but that would have meant that CGT would have been paid twice. Once when the transfer to trust took place and again on disposal.
Thanks again
__________________
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
The other thing is not to be shy of, is phoning HMRC. They can (on occasion!) be very helpful. They can guide you through completing that section. I once had a Foreign Tax issue, something i had never done before and they walked me though it.
