Taxation of Chargeable Gains Act 1992 section 87B

Section 87: remittance basis

Section 87B ensures that gains attributed to a beneficiary of a non-UK resident trust are treated as foreign chargeable gains where the beneficiary uses the remittance basis, so that those gains are only taxable when remitted to the UK.

• Where gains are attributed to an individual from a non-UK resident trust under the trust attribution rules for 2024-25 or earlier, and the individual uses the remittance basis, the gains are treated as arising from a disposal of an asset outside the UK
• This treatment applies even if the underlying trust gains actually arose from disposals of UK-situated assets — the gains are still classified as foreign chargeable gains in the beneficiary's hands
• The property or benefits received by the beneficiary (such as capital payments or transfers from the trust) are treated as deriving from those chargeable gains for the purposes of determining whether a remittance to the UK has occurred
• Any unremitted gains of this type count towards the £2,000 threshold below which the remittance basis can apply automatically without a formal claim

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