CG11030 | Effects of residence/domicile: gains arising to non-resident settlements

Gains realised by trustees of non-resident settlements can be charged on UK resident settlors or beneficiaries in certain circumstances. These gains are dealt with by Specialist PT Trusts & Estates. See CG38400 onwards.

TCGA92/S86 (see CG38430 onwards) allows the gains of a year to be charged on a settlor if:

• the settlement was created after 18 March 1991 or capital was added to it after that date

and

• the settlor or certain persons associated with him have an interest in the settlement during the year of assessment.

TCGA92/S87 (see CG38570 onwards) allows the gains or a proportion of the gains to be charged on a beneficiary if the beneficiary

• is resident or ordinarily* resident in the UK

and

• has received a capital payment from the settlement in any year.

* For 2013/14 and subsequent years ordinary residence does not need to be considered.