Taxation of Chargeable Gains Act 1992 Schedule 4A paragraph 11

Recovery of tax from person disposing of interest

Section 11 of Schedule 4A provides a mechanism for trustees to recover from the person who disposed of an interest in settled property the tax that arose on the deemed disposal of the underlying trust assets.

• When a disposal of an interest in a settlement triggers a deemed disposal of trust assets, any resulting capital gains tax falls initially on the trustees (or may be recovered from them by the settlor).
• The trustees have a statutory right to recover the full amount of that tax from the person who actually disposed of the interest in the settlement.
• To facilitate recovery, the trustees may ask an HMRC inspector to issue a certificate to the disposing person, setting out the chargeable gains and the tax paid.
• Any certificate issued by the inspector is treated as conclusive evidence of the facts it contains, meaning the figures cannot be disputed in recovery proceedings.