Taxation of Chargeable Gains Act 1992 Schedule 5 paragraph 6

Right of recovery

Section 86 Schedule 5 paragraph 6 deals with a settlor's statutory right to recover from the trustees any capital gains tax they have paid on gains attributed to them under section 86.

• Where a settlor pays tax on gains attributed to them under section 86(4), they have a statutory right to recover the full amount of that tax from any trustee of the settlement.
• The trust deed may also separately provide reimbursement rights, but the statutory right exists independently of any such provision.
• To support recovery, the settlor can request a formal certificate from HMRC specifying the gains, the tax paid, and the tax year in which the gains were treated as accruing.
• Any certificate issued by HMRC is treated as conclusive evidence of the facts it contains, providing the settlor with a definitive basis for their recovery claim against the trustees.