Taxation of Chargeable Gains Act 1992 Schedule 4C paragraph 8AA

Attribution of gains: remittance basis

Paragraph 8AA extends the remittance basis rules to chargeable gains attributed to beneficiaries under the Schedule 4C anti-avoidance provisions, so that they are treated in the same way as gains attributed under the main non-resident settlement rules.

• The remittance basis (as set out in section 87B) applies to gains attributed to beneficiaries under the Schedule 4C rules (paragraph 8) in the same way as it applies to gains attributed under the standard non-resident trust rules (section 87).
• This means that where a UK-resident beneficiary claims the remittance basis, gains attributed under the anti-avoidance provisions of Schedule 4C are only taxable to the extent they are remitted to the UK, mirroring the treatment of gains attributed under section 87.
• Schedule 4C deals with gains arising from certain transactions involving non-resident trusts, such as transfers of value by trustees to other trusts or entities, which would otherwise escape the main attribution rules.
• Without this provision, there would be an inconsistency: gains caught by the anti-avoidance rules could be taxed on an arising basis even where the beneficiary was entitled to the remittance basis on equivalent gains attributed under section 87.