Taxation of Chargeable Gains Act 1992 Schedule 4C paragraph 12A

Attribution of gains to beneficiaries in section 1M cases

Paragraph 12A deals with how trust gains are attributed to beneficiaries who received capital payments from a trust during a period of temporary non-residence from the UK.

• Where a beneficiary receives a capital payment from a trust during a temporary period of non-residence, and gains would be attributed to them on their return to the UK under the temporary non-residence rules in section 1M, this paragraph applies to determine how those gains are treated.
• If the capital payment exceeds the amount of gains already charged to the beneficiary under the normal trust attribution rules (sections 87 or 89), the excess is treated as a new deemed capital payment made to the beneficiary in the tax year they return to the UK.
• For the purposes of calculating the supplementary charge under paragraph 13, this deemed capital payment is treated as having been made at the same time as the original actual capital payment during the period of non-residence.
• All terms used in this paragraph carry the same meaning as in section 1M, which sets out the broader rules for taxing individuals who are temporarily non-resident.