Taxation of Chargeable Gains Act 1992 section 96

Payments by and to companies

Section 96 deals with how capital payments made through companies controlled by settlement trustees, or received by non-resident companies, are treated for the purposes of attributing trust gains to beneficiaries.

• Capital payments from a close company controlled by the trustees of a settlement are treated as if received directly from the trustees, preventing the use of interposed companies to avoid the trust gains attribution rules
• Where a non-resident close company receives a capital payment from trustees, that payment is re-attributed to the UK-resident individuals who control the company, either wholly or in equal shares depending on how many UK-resident controllers there are
• Where the company is controlled by persons acting together rather than individually, the payment is apportioned among all participators on a just and reasonable basis, but any participator entitled to less than one-twentieth (5%) of the payment is excluded
• Individuals who are temporarily non-resident are treated as UK resident for these purposes, and any resulting tax adjustments can be made without the usual time limits