Readers’ forum: Charitable transfer

I act for an unincorporated charity that wishes to change its status to that of a charitable incorporated organisation (CIO). I would be grateful for advice from Taxation readers on the tax consequences. In particular I am interested in the capital gains tax and stamp duty implications of transferring property held in trust in the names of the charities’ trustees to the new CIO.

The properties are recorded in the accounts at their historical cost value of £1.6m. The charity has been long established as a religious community centre and in terms of its size has an annual income of about £150 000. This comprises donations and rental income.

Query 19 567 – Canterbury.

Reply by Steve Kesby

The disposal to the CIO will be on a no gain/no loss basis.

It seems likely that the existing trust and new...