Private Client Law Update and Refresher Course – CGT, Income Tax & SDLT
This virtual classroom was delivered on 18 November 2021.
After this session you will be aware of the recent changes affecting estates and trusts and be able to:
- advise appropriately on the treatment and calculation of CGT and income tax for PRs, trustees and beneficiaries
- identify opportunities to save tax
- identify SDLT issues and advise PRs, trustees and beneficiaries appropriately.
What this will cover
SIMPLE & COMPLEX ESTATES
- Why does it matter?
- What is a complex estate
- How to avoid becoming complex
CGT DURING THE ADMINISTRATION PERIOD
- Exemptions and rates
- What is “market value”?
- tax savings from appropriations including evidence of appropriation and HMRC’s definition of when residue is ascertained
- Charities and CGT: importance of appropriations
- Value at which assets are appropriated between beneficiaries
ACCELERATED PAYMENT OF CGT ON DISPOSALS OF UK RESIDENTIAL LAND
- The new rules
- The payment process for PRs
INCOME TAX DURING THE ADMINISTRATION PERIOD
- Rates and allowances for PRs
- Special rules for ISAs
- Tax treatment of income of beneficiaries
INCOME TAX & CGT FOR TRUSTS
- CGT on actual and deemed disposals
- CGT holdover relief
- Different income tax regimes applying to trusts with and without a right to income
- Benefits of the right to income regime
WHEN IS SDLT AN ISSUE FOR PRIVATE CLIENT PRACTITIONERS?
- When is SDLT payable?
- May be relevant when distributing to beneficiaries
- Problems for trustees and beneficiaries of trusts