Taxation of Chargeable Gains Act 1992 section 7A-7B

Gains to be brought into pool on subsequent transfer of value [TCGA 1992 Sch 4C paras 7A-7B]

Section 7A-7B deals with what happens to the Schedule 4C gains pool when the trustees of a transferor settlement make a further transfer of value in a later tax year, including how gains from that further transfer are added to any existing pool or, if no pool exists, how a new pool is created.

• Paragraph 7A was removed by the Finance Act 2008 with effect from 6 April 2008 and no longer applies.
• Where trustees make a further transfer of value and an existing Schedule 4C pool is in place at the start of that tax year, both the new Schedule 4B trust gains and any additional chargeable gains amounts that have accrued since the original transfer are added into the existing pool.
• Where no Schedule 4C pool exists at the start of the tax year in which the further transfer occurs, a new pool is created and the rules apply to the further transfer in the same way as they did to the original transfer.
• A settlement is treated as having a Schedule 4C pool until the end of the tax year in which all the chargeable gains amounts in the pool have been fully reduced to nil.