SPL submission dated 22 October 1991 on inheritance tax and capital gains tax issues relevant to ESOPs

A paper dated 22 October 1991 prepared by the group and submitted to the Inland Revenue regarding issues relevant to Employee Share Ownership Plans. The main issues covered in the paper are:

  • Section 86 Inheritance Tax Act 1984 – The circumstances in which an application of settled property should be regarded as for the benefit of persons other than permitted beneficiaries;
  • Sections 65 and 73 Inheritance Tax Act 1984 – Occasions which may potentially attract an inheritance tax charge in respect of s.86 ESOPs and non-s.86 ESOPs;
  • Section 29A Capital Gains Tax Act 1979 – Capital gains tax on the transfer of shares;
  • Section 80 Finance Act 1981 – The circumstances in which accrued gains of ESOP trustees, where the ESOP is non-resident for CGT purposes, are attributed to UK resident and domiciled beneficiaries; and
  • Schedules 16 and 17 Finance Act 1991 – Settlements where the capital gains are attributed to the settlor in certain circumstances.
?attachment_id=898 download View | Download
Keywords: CGT, EBT, Inheritance tax
Categories: Document archive, Tax and trust law issues, Trusts