Readers’ forum: Holding over a capital gain on a distribution to beneficiaries

Offshore company

My client created an offshore trust back in 1999 when he was not UK domiciled so that the trust assets are excluded property. As was standard planning at that time the funds were used to create an overseas company which then purchased a property in London. The property remains the company’s sole asset.

It has been suggested that the offshore company be distributed to UK resident beneficiaries. Given the change in the rules for overseas companies there will be a capital gains tax charge in relation to the gain on the property in the period from 6 April 2019 to the date of transfer of the shares. I am unclear on how this gain which attracts tax in the UK interacts with the TCGA 1992 s 87 pool for attribution of gains to beneficiaries. I would presume that a gain that has suffered tax...