School for trusts

18 March 2014

Issue: 4444 / Categories: Forum & Feedback , Capital Gains , Companies

A will trust owns and operates the business of a school. The trustees wish to form a limited company, of which the trust will be the sole shareholder, to which the school assets and liabilities will be transferred. Questions of entitlement to incorporation and entrepreneurs’ relief are examined.

We act on behalf of the trustees of a will trust which owns and operates the business of a school. The trustees now wish to form a limited company of which the trust will be the sole shareholder. The trustees then intend that the whole of the school assets and liabilities will be transferred from the trust to the new limited company.

Our question is whether the trustees as a body will be treated as a “person” for the purposes of TCGA 1992 s 162 such that (all of the other conditions being met) incorporation relief from capital gains tax will apply.

We would very much welcome any advice from readers on this point. If they believe that there is any other action that we should be taking or if there is any other tax-efficient method of achieving the same ends we would...

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