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Treatment of the attributed gain

Where the necessary conditions in I5.1225 are satisfied, gains regarded as accruing to the trustees (see I5.1230) in a tax year are treated as accruing to the settlor in that year¹.

If the tax year is a split year for the settlor the gains are treated as accruing in the UK part of the year.

The attributed gains are reduced by allowable personal losses for the current year and earlier years², and are deemed to form the highest part of his chargeable gains for the year of assessment concerned³.

The settlor is entitled to recover the tax paid by him in respect of the trust gains from the trustees of the settlement. He may require a certificate from HMRC showing the amount of the gains and the amount of tax paid for the purposes of recovering the tax⁴ (see below).

Where amounts are attributed to a settlor from more than one settlement, any losses (if they are less than the total attributable gains) are