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HMRC internal manual

Capital Gains Manual

Gifts in settlement: whether settled property

There may be difficulty in deciding whether assets transferred to trustees have become settled property or whether the transferor remains absolutely entitled as against the trustee. In Booth v Ellard, 53TC393, see CG34410, shareholders in a company who transferred shares to trustees to be held for their collective benefit were held not to have made any disposal for Capital Gains Tax purposes. See also Warrington (or Jenkins) v Brown 62TC226 see CG34411, which concerned a property sharing arrangement. There may be other circumstances in which an apparent transfer to trustees is treated as a transfer to individuals because of their absolute entitlement, see CG34300+.