Taxation of Chargeable Gains Act 1992 Schedule 4A paragraph 8

The relevant underlying assets

Paragraph 8 of Schedule 4A determines which of the trust's underlying assets are treated as disposed of when a beneficiary disposes of their interest in a settlement.

• Where the interest relates to a specific fund or defined part of the trust, only the assets in that fund or part are treated as disposed of; otherwise, all assets in the settlement are potentially within scope.
• If the interest represents a specific fraction or amount of income or capital, only a corresponding proportion of each relevant asset is deemed disposed of; in all other cases, the whole of each asset is deemed disposed of.
• If the underlying assets change between the start and completion of the disposal, special rules apply to reflect the altered composition of the trust property.
• Where only part of an asset falls within a specific fund or defined portion of the settlement, that part is treated as a separate asset in its own right for the purposes of these rules.