Taxation of Chargeable Gains Act 1992 section 97

Supplementary provisions

Section 97 defines "capital payment" and provides supplementary rules for how capital payments from non-resident settlements are identified, valued, and attributed to beneficiaries for the purposes of the trust gains attribution provisions.

• A capital payment is broadly any payment, asset transfer, or benefit from a settlement that is not chargeable to income tax and is not made under an arm's length transaction — and it includes loans and occasions where settled property becomes absolutely owned
• The value of a capital payment that takes the form of a loan or a non-cash benefit is measured by the value of the benefit conferred, with specific valuation rules for loans, movable property, and land made available to a beneficiary
• A beneficiary is treated as receiving a capital payment whether it comes directly or indirectly from the trustees, is used to pay off the beneficiary's debts, is applied for the beneficiary's benefit, or is received by a third party on the beneficiary's instructions
• Any person who receives a capital payment from the trustees on or after 19 March 1991, even if not a named beneficiary of the settlement, is treated as a beneficiary for attribution purposes — unless the payment is already attributed to another beneficiary or is received by trustees of another settlement