Taxation of Chargeable Gains Act 1992 section 69A

Sub-fund settlements

Section 69A introduces Schedule 4ZA, which contains the detailed rules governing the capital gains tax treatment of sub-fund settlements.

• This section gives legal effect to Schedule 4ZA, which deals with sub-fund settlements.
• A sub-fund settlement arises when part of a trust is treated as a separate settlement for tax purposes.
• The detailed rules for how sub-fund settlements are taxed on chargeable gains are set out in Schedule 4ZA rather than in the section itself.
• The provision was introduced by the Finance Act 2006 to clarify the capital gains tax treatment where trusts are split into sub-funds.