Taxation of Chargeable Gains Act 1992 section 66

Insolvents' assets

Section 66 sets out how capital gains tax applies to assets held by trustees or assignees in bankruptcy or under deeds of arrangement, including what happens when the bankrupt or debtor dies.

• For CGT purposes, assets held by a trustee or assignee in bankruptcy are treated as if they still belong to the bankrupt or debtor, but the tax on any chargeable gains is assessed on and recoverable from the trustee or assignee.
• If the bankrupt or debtor dies, any assets held by the trustee or assignee at that point are treated as if held by a personal representative of the deceased, and the normal death uplift rules apply.
• Assets that vest in a trustee in bankruptcy only after the death of the bankrupt or debtor are likewise treated as held by a personal representative, and the look-through rule treating them as the debtor's assets no longer applies.
• Property held by a trustee or assignee in bankruptcy or under a deed of arrangement is not treated as settled property for CGT purposes.