Taxation of Chargeable Gains Act 1992 section 68A

Meaning of "settlor"

Section 68A defines who counts as a "settlor" of a settlement for the purposes of capital gains tax, including situations involving indirect provision of property, death, and reciprocal arrangements.

• A settlor is anyone who has made or entered into a settlement, provided property for it, or whose will or intestacy gave rise to it — including where this was done indirectly
• A settlor is linked to specific property: either the property they originally settled, or any property that derives from it (including income reinvested within the trust)
• Where two people enter into reciprocal arrangements — for example, A funds B's settlement and B funds A's — each is treated as the settlor of their own settlement, not the other person's
• A person ceases to be a settlor only when no property they settled (or derived from it) remains in the settlement, they have not undertaken to provide more, and they have no reciprocal arrangements in place for future contributions