Commentary

I5.1248 Supplementary charge on capital payments

IHT, trusts and estates

I5.1248 Supplementary charge on capital payments

I5.1248 Supplementary charge on capital payments

Where CGT is charged in respect of a capital payment received more than one year after the trustees' s 1(3) amount accrues, a supplementary charge may apply1.

If the trustees' gains arise and are matched with a capital payment made in the same year, there is no increase in the rate of tax. If, however, there is at least one year between the capital payment and the end of the tax year in which the gain was made, the CGT paid by the individual as a result of the capital payment2 is increased by a supplementary charge.

This is a deemed interest charge of

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