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Taxing gains on trustees—introduction

There may be CGT implications for trustees when:

1. Ìý

   •ÌýÌýÌýÌý a trust is created

2. Ìý

   •ÌýÌýÌýÌý gains accrue to the trustees while a settlement is in existence, and

3. Ìý

   •ÌýÌýÌýÌý certain events take place which are deemed to be disposals of trust assets, such as when a beneficiary becomes absolutely entitled to the trust property

Chargeable gains realised by trustees are chargeable to CGT in the name of any one or more of the relevant trustees, ie a trustee in the tax year concerned or any subsequent trustee¹.

Gains are not chargeable on the trustees when:

1. Ìý

   •ÌýÌýÌýÌý they are bare trustees²

2. Ìý

   •ÌýÌýÌýÌý they are trustees of an 'employee trust' and a beneficiary receives, or becomes entitled to, trust property

3. Ìý

   •ÌýÌýÌýÌý the gain of a non-resident or dual resident trust is attributed to someone else, eg the settlor³, a beneficiary⁴ or someone else⁵ (see I5.1225–I5.1231 and I5.1240–I5.1245)

If the trustees realise an