Stand-out Q – purchase an asset from a trust…


FRI, 24 MAR 2017

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The member of the SIPP wishes to purchase an asset from a trust, for which he is a trustee; is this possible?


Yes provided the transaction is carried out at arms length. If the value paid for the asset is not a legitimate market value, then “value shifting” may be deemed to have occurred. In such a situation, the difference between the value and what was paid for the asset will be treated as an unauthorised payment with the appropriate charges being levied.

The market value of an asset has the meaning given by Section 272 Taxation of Chargeable Gains Act 1992 and means the price which those assets would reasonably be expected to fetch on a sale in the open market.

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