½Û×ÓÊÓƵ

Attribution of settlement gains—overview

The capital gains of a non-resident settlement are not chargeable on its trustees, unless they arise from the disposal of a UK branch or agency or an interest in UK land¹.

They may, however, be chargeable on the settlor where he has retained an interest in the settlement² (see I5.1225) or, where this charge does not apply and the payment has not already been liable to income tax under the transfer of assets abroad rules³ (see I5.1236), they may be treated as accruing to a beneficiary.

The beneficiary is deemed to realise a chargeable gain in a tax year if⁴:

1. Ìý

   •ÌýÌýÌýÌý he has received a 'capital payment' (see I5.1241) from the trustees in that or an earlier year, and

2. Ìý

   •ÌýÌýÌýÌý all or part of that payment is matched with the trustees' gains (see I5.1245), calculated as if the trustees were UK resident⁵

Whenever trust gains are attributed under these