Taxation of Chargeable Gains Act 1992 Schedule 4A paragraph 1

Circumstances in which this Schedule applies

Schedule 4A paragraph 1 establishes when the Schedule applies, which is whenever someone disposes of an interest in settled property and receives consideration in return.

• The Schedule is triggered by a disposal of an interest in settled property made for consideration
• Where the Schedule applies, the disposal is generally treated as a deemed disposal of the underlying trust assets
• The purpose is to ensure that gains on the underlying assets are brought into charge when an interest in a trust is sold or otherwise disposed of for value
• A disposal without consideration (such as a gift of a trust interest) would not fall within this Schedule