Commentary

C1.205 Trustees of settlements

Capital gains tax
Capital gains tax | Commentary

C1.205 Trustees of settlements

Capital gains tax | Commentary

C1.205 Trustees of settlements

Capital gains tax treatment of trustees

With the exception of assets held by nominees and bare trustees (see C1.203), where assets are held in trust, the trustees are the legal owners of the assets1.

The liability of the trustees to UK capital gains tax in respect of disposals of chargeable assets within in the trust depends on the residence status of the trust:

  1.  

    •     UK resident—subject to UK capital gains tax on gains and losses arising on chargeable disposals of worldwide chargeable assets of the trust2

  2.  

    •     non-resident—subject to UK capital gains tax on3 (a) gains arising on chargeable disposals of UK chargeable assets that are used in the trust's UK trade carried out through a UK branch or agency, (b) gains arising on chargeable disposals of interests in UK land (whether made directly or indirectly). See I5.1216 and 'Capital gains tax treatment where the trust is settlor-interested'

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