Taxation of Chargeable Gains Act 1992 section 76

Disposal of interests in settled property

Section 76 sets out the rules for when a chargeable gain does or does not arise on the disposal of an interest in a trust (settlement), including annuities, life interests, and reversionary interests.

• Generally, no chargeable gain arises when a beneficiary disposes of an interest created under a settlement, unless that interest was originally acquired for money or money's worth
• This exemption does not apply where the settlement has at any time had trustees who were not UK resident or who were treated as resident outside the UK under a double taxation agreement
• Where the settlement involves property derived from a non-UK resident settlement, the exemption is also disapplied, meaning a chargeable gain can arise
• Where a person who acquired an interest in settled property becomes absolutely entitled to the underlying trust property, they are treated as disposing of their interest at market value in exchange for that property