What is the CGT position, if I gift property to an adult child?
If you wish to gift property to an adult child via a trust, you can elect to hold over the capital gains tax liability. Otherwise, CGT would be payable on such a transfer because it is effectively a gift of the property. However, no private residence relief will be available on a future sale. How do I use trusts for IHT planning A financial adviser will often suggest using a trust to preserve family wealth. A trust is basically an obligation binding a person called a trustee to deal with ‘property’ (assets) in a particular way for the benefit of one or more ‘beneficiaries.’ Terms used when talking about trusts Trust property: this can include money, investments, land or buildings and other assets. The cash and investments held in the trust are called the ‘capital’ or ‘fund’ of the trust. This capital may produce income, such as interest or dividends. Land and buildings may produce rental income. The ‘settlor’ is the person who creates the trust and puts property into it at the start or
