chelmo

Bumped....

I am the trustee of a discretionary trust which was ended towards the end of the last tax year. Whilst solicitors are dealing with the IHT declaration I have always handled the tax returns and wish to also deal with this final one myself. I would just appreciate a little guidance regarding the correct CGT declaration. There were four share sales before the trust was ended resulting in net gains of £2634. The remaining shares were then transferred to the sole beneficiary; most of these transfers resulted in gains but a few resulted in losses. It would seem that as holdover relief is given on a "per transaction" basis the entries to be made in column G on page TC2 of the SA905, in relation to those shares transferred with a gain, would be the full gain in each case with the entries in column H being nil. Where the transfers have resulted in a loss those losses should then be allocated against the actual gains (£2634) which arose earlier in the year. Is this correct, please? Assuming the above to be correct this does leave a balance of unused losses of about £8000. Can these losses be transferred to the beneficiary? Reading the comment in the HMRC manual at CG37200 would suggest they can though only against the specific asset transferred. If anyone has any comments it would be appreciated!