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Home / Simons-Taxes /IHT, trusts and estates /Part I5 Settled property /Division I5.12 Income tax and CGT for non-resident settlements /Tax liabilities of non-resident trustees / I5.1217 Capital gains tax—trustees' emigration charge
Commentary

I5.1217 Capital gains tax—trustees' emigration charge

IHT, trusts and estates

Emigration charge on non-resident trusts

Where UK resident trustees become non-resident, for example due to the resignation of UK resident trustees who are replaced by non-resident trustees, they are deemed to have disposed of all the assets held in the trust at the time of emigration and to have reacquired them at their market value1. If this deemed disposal gives rise to a capital gain then, immediately before the trustees cease to be resident, they are chargeable to a CGT emigration, or 'exit', charge on that gain.

Trust assets are subject to the exit charge unless they:

  1. Ìý

    •ÌýÌýÌýÌý continue to be used for the purposes of a trade carried on by the trustees in the UK through a branch or agency2 or, in the case of corporate trustees, through a permanent establishment3, or

  2. Ìý

    •ÌýÌýÌýÌý are exempt from CGT under a double taxation agreement4

A similar charge arises where trustees remain UK resident but are also treated as resident in another country by virtue

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Web page updated on 17 Mar 2025 17:25