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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 / I5.1227 Property originating from a settlor
Commentary

I5.1227 Property originating from a settlor


IHT, trusts and estates

When does property originate from a settlor?

It is essential to determine whether property originates from a settlor as:

  1. Ìý

    •ÌýÌýÌýÌý only gains relating to such property are subject to the settlor charge1, and

  2. Ìý

    •ÌýÌýÌýÌý a defined person only has an interest in a settlement if they can enjoy a benefit from such property2

Property and income (including any accumulated income from that property3) originates from a person if it is4:

  1. Ìý

    •ÌýÌýÌýÌý provided by him, whether directly or indirectly5

  2. Ìý

    •ÌýÌýÌýÌý property representing that property6, for example where the original trust property has been sold and the proceeds reinvested

  3. Ìý

    •ÌýÌýÌýÌý provided by another person under a reciprocal arrangement with the settlor7

In Coombes8 a beneficiary of an offshore settlement, who was not otherwise a settlor, gave money to an offshore company owned

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Web page updated on 17 Mar 2025 15:27