The following Private Client guidance note provides comprehensive and up to date legal information covering:
A Sch 4C pool, ie a pool of gains to which Schedule 4C to the Taxation of Chargeable Gains Act 1992 (TCGA 1992) applies, is created when the trustees of a settlement make a transfer of value to which TCGA 1992, Sch 4B applies (Sch 4B transfer). The Sch 4B (or 'trustee borrowing') rules are discussed in the Offshore trusts—the trustee borrowing rules—Sch 4B and Sch 4C TCGA 1992 Practice Note.
It is important to note that a Sch 4C pool is created even if no gain results from the transfer or if any such gain is attributed to the settlor on an arising basis under TCGA 1992, s 86.
Note that, in the event that Sch 4B applies, the Sch 4C matching rules apply rather than those in TCGA 1992, s 87.
When a Sch 4C pool has been created, it contains:
any outstanding TCGA 1992, s 1(3) (formerly s 2(2)) amounts in the settlement
any TCGA 1992, s 1(3) amounts that have been matched to payments to non-residents for the current and prior years, and
any TCGA 1992, Sch 4B gains
The outstanding s 1(3) amount of any given year is the s 1(3) amount of that year less any capital payment which has been
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