Taxation of Chargeable Gains Act 1992 section 90

Sections 87 and 89(2): transfers between settlements

Section 90 deals with how trust gains are reallocated when trustees transfer all or part of settled property from one settlement to another settlement.

• When property moves between settlements, the receiving settlement inherits the outstanding trust gains (the section 1(3) amount) from the transferring settlement, either in full or in proportion to the value transferred.
• The transferring settlement's outstanding gains are reduced by the same amount added to the receiving settlement, ensuring gains are not duplicated — though the timing of the increase and decrease differs slightly.
• Where property is subject to debt, the market value used for proportionate calculations must be reduced by the amount of that debt.
• The rules do not apply to transfers caught by the anti-avoidance provisions in Schedule 4B, or to gains already sitting in a Schedule 4C pool.