The commentary below considers the exposure of trustees of a settlement to tax on capital gains. For an overview of the taxation of capital gains generally, see C1.101.
Capital gains tax treatment of trustees
With the exception of assets held by nominees and bare trustees (see C1.203), where assets are held in trust, the trustees are the legal owners of the assets1.
The liability of the trustees to UK capital gains tax in respect of disposals of chargeable assets within in the trust depends on the residence status of the trust:
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•ÌýÌýÌýÌý UK resident – subject to UK capital gains tax on gains and losses arising on chargeable disposals of worldwide chargeable assets of the trust2
- Ìý
•ÌýÌýÌýÌý non-resident – subject to UK capital gains tax on3 (a) gains arising on chargeable disposals of UK chargeable assets that are used in the trust's UK trade carried out through a UK branch or agency (see C1.602, (b) gains arising on chargeable disposals of interests in UK land
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