Commentary

I5.1246 Matching of settlement gains with capital payments—examples

IHT, trusts and estates

I5.1246 Matching of settlement gains with capital payments—examples

I5.1246 Matching of settlement gains with capital payments—examples

The following examples illustrate the matching process detailed in I5.1245.

Example 1—capital payments to beneficiary

A non-resident settlement realises the following capital gains and capital losses and the trustees make the following capital payments to George, who is resident in the UK.

YearCapital gains (losses)Capital payments
££
2016/1710,000Nil
2017/18(4,000)9,000
2018/1920,00016,000
2019/20Nil5,000
26,00030,000

The gains are matched as follows:

2016/17 No match; gains £10,000 carried forward to 2017/18.

2017/18 Gains £6,000 (£10,000 brought forward less losses £4,000) matched with £6,000 of the capital payments. Unmatched capital payments £3,000 are carried forward.

2018/19 Gains £19,000

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial