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HMRC internal manual

Capital Gains Manual

Effects of residence/domicile: gains arising to non-resident settlements

Gains realised by trustees of non-resident settlements can be charged on UK resident settlors or beneficiaries in certain circumstances. These gains are dealt with by Specialist PT Trusts & Estates. See CG38400+.

TCGA92/S86 allows the gains of a year to be charged on a settlor if:

  • the settlement was created after 18 March 1991 or capital was added to it after that date


  • the settlor or certain persons associated with him have an interest in the settlement during the year of assessment.

See CG38430+.

TCGA92/S87 allows the gains or a proportion of the gains to be charged on a beneficiary if the beneficiary

  • is resident or ordinarily* resident in the UK


  • has received a capital payment from the settlement in any year.

See CG38570c.

  • For 2013/14 and subsequent years ordinary residence does not need to be considered.