Taxation of Chargeable Gains Act 1992 Schedule 4C paragraph 3

Computation of Schedule 4B trust gains

Section 3 of Schedule 4C defines how to calculate the "Schedule 4B trust gains" that arise when value is transferred from a trust in circumstances caught by Schedule 4B.

• Schedule 4B trust gains are calculated separately for each transfer of value to which Schedule 4B applies.
• The formula is: Chargeable Amount minus Settlor's Gains minus Allowable Losses (CA − SG − AL).
• Any gains already taxed on the settlor are deducted, preventing double taxation on the same amount.
• Allowable losses of the trust may also be set against the chargeable amount to reduce the trust gains figure.