Taxation of Chargeable Gains Act 1992 Schedule 4A paragraph 6

Condition as to UK residence of settlor

Paragraph 6 of Schedule 4A sets out the UK residence condition that must be met by a settlor before the deemed disposal rules for interests in settled property can apply.

• At least one settlor of the settlement must have been UK resident in the tax year of the disposal or in any of the five preceding tax years.
• UK residence is determined under the statutory residence test in Chapter 1 of Part 1 of the Act.
• Where the start of a disposal and its effective completion fall in different tax years, the residence condition may be modified under paragraph 13(3)(c).
• No tax year before 1999-00 is taken into account when checking whether the residence condition is satisfied.