Trusts and Capital Gains Tax

Money or assets can be held or managed by a trust. This guide explains when UK resident trustees may have to pay Capital Gains Tax and how to calculate any tax due.

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What is a trust?

A trust can hold assets - such as land, money, shares or even antiques - for the benefit of one or more 'beneficiaries'. Trustees are the legal owners of trusts. Sometimes trustees can make decisions about how the assets in the trust are to be used.

Trustees act in accordance with the terms of the trust. These are set out by the person who has put assets into the trust. This person is known as the 'settlor'.

Find out more about trusts and how they work

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When trusts have to pay Capital Gains Tax

Trustees may have to pay Capital Gains Tax if the trust makes a capital gain.

Find out when a trust has Capital Gains Tax to pay, and who pays it, in the introductory guide to trusts and Capital Gains Tax.

Introduction to trusts and Capital Gains Tax

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Trusts, the 'Annual Exempt Amount' and calculating tax

The annual tax-free amount (known as the 'Annual Exempt Amount') for most trusts is £5,450 for 2013-14.

If the beneficiary is mentally disabled or receiving the middle or higher rate of Attendance Allowance or Disability Living Allowance, the trust gets the same Annual Exempt Amount as individuals. This is £10,900 for 2013-14.

When you are calculating Capital Gains Tax for a trust the rules are similar to those for individuals. But there are a few small differences.

How to calculate Capital Gains Tax for trusts

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Getting help with trusts from HM Revenue & Customs

If you have a Capital Gains Tax query on a trust and can’t find what you need online, you can contact HM Revenue & Customs (HMRC). However, please bear in mind that HMRC won’t be able to answer general tax planning queries.

Contact HMRC Trusts & Estates

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More useful links

Types of trust and tax implications