Taxation of Chargeable Gains Act 1992 Schedule 5 paragraph 5C

Old section 87 rebasing elections to apply in relation to section 86

Paragraph 5C provides relief from capital gains tax for settlors where trustees of a non-resident settlement previously made a rebasing election under Schedule 7 to the Finance Act 2008, limiting the gains attributed to the settlor under section 86 to a proportion that reflects post-April 2008 growth only.

• This paragraph applies where trustees made a capital gains rebasing election under Schedule 7 to FA 2008 and gains would otherwise be attributed to the settlor under section 86(4).
• Where the paragraph applies, the settlor is only charged capital gains tax on a relevant proportion of the gains attributed to them, effectively stripping out pre-6 April 2008 growth.
• The relevant proportion is calculated as a fraction: A divided by B, where A is the hypothetical section 86 gain assuming all relevant assets were rebased to market value immediately before 6 April 2008, and B is the actual amount of gains attributed under section 86(4).
• A relevant asset is one that was disposed of in the tax year in question and had been held continuously within the settlement from the beginning of 6 April 2008 until its disposal.