The ICAEW has published HMRC’s replies to queries on the new deemed domicile legislation, particularly in relation to trusts. HMRC has confirmed that there will be a transitional window until 5 April 2018 for trusts to repay non-commercial loans in full, or convert them to commercial terms, to avoid these being treated as post-April 2017 chargeable additions to the trust.
Where the settlor has the power to revoke a trust to safeguard the position of beneficiaries, HMRC will not regard the failure to exercise such a power as amounting to an addition to the trust. In these circumstances, the trust would not lose its protection.
HMRC has also confirmed that matched payments made to non-residents before 6 April 2017 will be able to wash out pre-April 2017 gains; only unmatched payments will be disregarded under the CGT commencement provisions.
Read the full replies at http://bit.ly/2llmBJf.
The ICAEW has published HMRC’s replies to queries on the new deemed domicile legislation, particularly in relation to trusts. HMRC has confirmed that there will be a transitional window until 5 April 2018 for trusts to repay non-commercial loans in full, or convert them to commercial terms, to avoid these being treated as post-April 2017 chargeable additions to the trust.
Where the settlor has the power to revoke a trust to safeguard the position of beneficiaries, HMRC will not regard the failure to exercise such a power as amounting to an addition to the trust. In these circumstances, the trust would not lose its protection.
HMRC has also confirmed that matched payments made to non-residents before 6 April 2017 will be able to wash out pre-April 2017 gains; only unmatched payments will be disregarded under the CGT commencement provisions.
Read the full replies at http://bit.ly/2llmBJf.