Taxation of Chargeable Gains Act 1992 Schedule 4C paragraph 13A

Effect of settlement ceasing to exist after transfer of value

Paragraph 13A deals with what happens to the Schedule 4C chargeable gains pool when a settlement comes to an end after its trustees have made a transfer of value subject to Schedule 4B.

• Where trustees have made a transfer of value within the scope of Schedule 4B, special rules apply if the settlement subsequently ceases to exist.
• If the settlement ceases to exist part-way through a tax year, the legislation creates a deemed year-end immediately before the date the settlement ceased.
• This ensures that the Schedule 4C pool of chargeable gains is properly calculated up to the point the settlement ends, rather than being left open until the following 5 April.
• The effect is to bring forward the final computation date so that no gains fall through a gap between the cessation of the settlement and the actual end of the tax year.