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CGT on charitable incorporated organisation?
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...
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