Commentary

I5.1315 Disposal of interest in settled property

IHT, trusts and estates

I5.1315 Disposal of interest in settled property

Capital gains tax (CGT) for beneficiaries

I5.1315 Disposal of interest in settled property

Subject to the rules relating to non-resident settlements (see below) the disposal of an interest in a settlement (including an annuity or a life interest or the reversion to an annuity or life interest1) does not give rise to a chargeable gain unless the person disposing of the interest:

  1.  

    (a)     acquired it for a consideration in money or money's worth (other than a consideration consisting of another interest in the same settlement), or

  2.  

    (b)     derives his title from a person who so acquired the interest2

(Whether or not it falls within (a), the sale of an interest under a UK resident settlement in which the settlor has an interest may result in

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