Taxation of Chargeable Gains Act 1992 section 61

Funds in court

Section 61 deals with the capital gains tax treatment of funds held in court by the Accountant General, establishing that such funds are treated as held on behalf of the persons entitled to them and that investment transactions carried out by the Accountant General give rise to acquisitions and disposals for capital gains purposes.

• Funds in court held by the Accountant General are treated as held by him as a nominee for the persons entitled to those funds, or for their trustees, meaning gains and losses are attributed to those individuals or trusts rather than to the court.
• When the Accountant General invests or realises funds standing to a particular account, the administrative method used does not change whether an acquisition or disposal has occurred for capital gains purposes.
• Even where the Accountant General uses internal set-off — investing funds from one account while simultaneously realising investments from another — each transaction is still treated as a separate acquisition or disposal of shares in a court investment fund.
• "Funds in court" covers money held in the Senior Courts, county courts, and statutory deposits under the Administration of Justice Act 1982, as well as money in the Court of Judicature and county courts in Northern Ireland, together with investments representing that money.