Taxation of Chargeable Gains Act 1992 Schedule 4C paragraph 4

Chargeable amount: non-resident settlement

Section 4 sets out how to calculate the chargeable amount when a transfer of value is made by trustees of a settlement who are non-UK resident throughout the relevant tax year.

• This paragraph applies where the trustees of the transferor settlement are at no time resident in the UK during the tax year in which the transfer of value is made.
• The chargeable amount is calculated as the amount on which the trustees would have been liable to capital gains tax if they had been UK resident that year and had made the deemed disposals under Schedule 4B.
• Any chargeable gains or allowable losses that arise from disposals already within the charge to capital gains tax for non-UK residents (under section 1A(3)(b) or (c)) are excluded from the chargeable amount to avoid double counting.
• The effect is to create a hypothetical UK-resident tax charge on the settlement's gains, while stripping out any gains that are already taxable on the non-resident trustees directly.