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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 /Liability of settlors—capital gains tax / I5.1225 CGT settlor charge
Commentary

I5.1225 CGT settlor charge

IHT, trusts and estates

I5.1225 CGT settlor charge

Settlor charge—overview

The capital gains of the trustees of a non-resident 'qualifying' settlement (see I5.1228) accruing in a tax year are attributed to and chargeable on the settlor if he has an interest in the settlement1, even if he actually receives nothing from the settlement.

A settlor has an interest in a settlement if he or his immediate family members can benefit from it in that tax year (see I5.1226).

The gains are treated as accruing to the settlor and are charged on him in the year that they accrue to the trustees2.

Settlor charge—basic conditions

For the settlor charge to apply the following conditions must be satisfied:

  1. Ìý

    (a)ÌýÌýÌýÌý The settlor

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