Taxation of Chargeable Gains Act 1992 Schedule 4A paragraph 5

Condition as to UK residence of trustees

Section 5 sets out the UK residence condition that trustees must satisfy for the purposes of the deemed disposal rules in Schedule 4A, which apply when an interest in settled property is disposed of.

• Trustees must have been UK resident during at least part of the relevant tax year for the condition to be met
• Trustees who are treated as resident outside the UK under a double taxation agreement are not regarded as UK resident, even if they would otherwise qualify
• Where a disposal straddles two different tax years (i.e. it begins in one year and is effectively completed in another), special rules under paragraph 13 may modify how this residence condition applies
• The trustees must be UK resident at some time during the year of disposal, or any of the preceding five tax years