Taxation of Chargeable Gains Act 1992 Schedule 1C paragraph 1

Introductory

Schedule 1C paragraph 1 introduces the rules for applying the capital gains tax annual exempt amount to trustees of settlements, depending on the type of settlement involved.

• The annual exempt amount under section 1K can apply to trustees of a settlement, sometimes with modifications, depending on the nature of the settlement.
• Whether the annual exempt amount applies depends on whether the settlement is for the benefit of a disabled person or is a qualifying UK settlement.
• The annual exempt amount for trustees is linked to the individual annual exempt amount, which was £12,300 for 2020–21 and 2021–22, fell to £6,000 for 2022–23, and reduced further to £3,000 for 2023–24 onwards.
• The annual exemption only applies by reference to individuals who are both resident and domiciled in the UK for the tax year in question.