The following Private Client guidance note provides comprehensive and up to date legal information covering:
This Practice Note was originally drafted by Owen Clutton of Macfarlanes LLP but is now maintained by Lexis®PSL Private Client.
The Finance Act 2006 (FA 2006) introduced a common test for residence for both income and capital gains tax purposes.
For the first time in relation to income tax the trustees collectively were treated as a single person, distinct from the individual persons who are the trustees of the settlement from time to time.
This deemed single person would be treated as UK resident if:
all the persons who are trustees of the settlement are UK resident (for personal tax purposes) or
at least one person who is a trustee of the settlement is UK resident and at least one such person is non-UK resident, and a settlor in relation to the settlement meets Condition C
See Residence of individuals—overview subtopic for information on residence for personal tax purposes.
Condition C will be satisfied with reference to three different circumstances:
if the settlement arises on the death of the settlor whether by Will, intestacy or otherwise, and immediately before the settlor's death he or she was resident or domiciled in the UK
in relation to settlements made during lifetime, if the settlor was resident or domiciled in the UK when he or she made or added assets to the settlement
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