Readers’ forum: Status anxiety

My client is one of the trustees of a registered charity that owns a property. The property is held by four of the trustees in trust for the charity.

If the charity converts to a charitable incorporated organisation the property would be transferred. But if this were done at current market rates a substantial capital gain would arise.

Are readers familiar with any exemptions for such a transfer to prevent a capital gains tax liability falling on either the charity or the trustees?

Query 19 248 – Confused Trustee.

Reply by Bramble

Conversion depends on the charity’s structure.

It is assumed that the registered charity is unincorporated and as such it is therefore not a legal entity so the powers of holding property liability exposure and so on lie with the trustees. Likewise the charity cannot...