European Court of Justice ruling on capital gains tax and transfers of assets between trusts

The European Court of Justice has made a preliminary ruling that a UK capital gains tax charge when trust assets are transferred from one trust to another unjustifiably restricts freedom of establishment.  The ruling says that it should be possible to defer the capital gains tax charge until the assets are eventually sold or leave the trusts altogether.  In future this may mean that the UK tax rules are changed in line with this.  However, this is only a preliminary ruling.

For more information please contact Adam Herbert.