Taxation of Chargeable Gains Act 1992 section 87D

Sections 87 and 87A: disregard of capital payments to non-residents

Section 87D provides that capital payments made by offshore trust trustees to non-UK resident beneficiaries are generally ignored when matching trust gains to beneficiaries, subject to certain exceptions.

• Capital payments received by a beneficiary who is non-UK resident throughout the tax year are disregarded when attributing trust gains to beneficiaries under the matching rules.
• The disregard does not apply if the beneficiary is a close member of the settlor's family, the payment is received on or after 6 April 2018, and the settlor is UK resident in the year the payment is received.
• Separate rules apply where the beneficiary is only temporarily non-resident, and where payments are made in the year a settlement comes to an end.
• The disregard does not affect the onward gifts rules, which may still attribute gains to UK resident recipients of amounts passed on by non-resident beneficiaries.