SolvedCG38724 | Charge on beneficiary of non-resident settlement – TCGA92/S87: Matching in a later year - example - the rules for 2008-09 to 2017-18
From HM Revenue & Customs · Capital Gains Manual
2014-15
| Description | Amount |
|---|---|
| Trustees’ section 2(2) amount | £30,000 |
| Capital payment received beneficiary C | £26,000 |
2013-14
| Description | Amount |
|---|---|
| Unmatched capital payment beneficiary A | £5,000 |
This is a continuation of CG38715.
Section 87 gains
The capital payments received in 2014-15 are matched first against the section 2(2) amount for that year. Chargeable gains of £26,000 accrue to C in 2014-15 leaving an unmatched section 2(2) amount of £4,000.
The balance of the capital payment £5000 received in 2013-14 is matched against this gain. A gain of £4000 is treated as accruing to A in 2014-15. A’s unmatched capital payments received in 2013-14 are reduced to £1,000.