Commentary

I5.1243 Attribution of settlement gains—disregard of certain capital payments to non-residents

IHT, trusts and estates

I5.1243 Attribution of settlement gains—disregard of certain capital payments to non-residents

I5.1243 Attribution of settlement gains—disregard of certain capital payments to non-residents

Disregard of capital payments—overview

In certain situations, from 2018/19, a capital payment may be 'disregarded', ie ignored, when determining how it should be matched with settlement gains (see I5.1245).

These disregards apply when capital payments are made to:

  1.  

    •     a beneficiary who is non-UK resident for the whole of the tax year1, or

  2.  

    •     a migrating beneficiary2

There are specific provisions where the capital payment is:

  1.  

    •     made during a period of the beneficiary's temporary non-residence3 (see below)

  2.  

    •     made to a close family member of the settlor4 (see I5.1244)

  3.  

    •    

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