So, you’re investing in property in order to sell it at a profit or to earn rental income. Either way this is trade and if the trust owns the property the tax is 45%. How do you avoid this heavy tax? But firstly, why hold the property in a trust in the first place? The reason is that you want to grow your wealth and you do not want too much wealth when you die as it is subject (after allowances) to 20% Estate Duty and up to 18% CGT, a total 38% of your investment wealth (ignoring the allowances)…
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