CGT concessions for disabled and vulnerable beneficiaries

Produced by a Tolley Trusts and Inheritance Tax expert

Trusts and Inheritance Tax

Guidance

Introduction

Finance Act 2013 introduced harmonising amendments to all the qualifying conditions for trusts for disabled persons and other vulnerable beneficiaries. See the Disabled and vulnerable beneficiary trusts ― uniform definitions guidance note. Prior to the FA 2013 changes, it was a confusing trail through the tangle of CGT concessions aimed at trusts for vulnerable people. Not only did they conflict with the concessions for other taxes, the provisions for capital gains tax were not consistent. The new rules in Finance Act 2013 attempt to apply uniform conditions for all special provisions for disabled and vulnerable beneficiary trusts with effect from 2013/14. Finance Act 2014 made further adjustments.

However, where the new rules have become more restrictive, trusts already in existence, or included in a Will drafted before 8 April 2013, and satisfying the old conditions, will continue to qualify under the old conditions. The change to more restrictive qualifying conditions relates principally to the application of capital

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