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HMRC internal manual

Capital Gains Manual

Annual exempt amount: trust exemption: restrictions


Trustees of settlements made on or after 7 June 1978 are entitled to the trustexemption, but the amount of the exemption is subject to restriction if the settlor hasmade two or more settlements after 6 June 1978.

Where the settlor has made more than one settlement after 6 June 1978, each settlementwhich exists at any time during a year of assessment is regarded as a qualifyingsettlement within a group of settlements unless it is an `excluded’ settlement, seeCG18112 - CG18113, or qualifies for the main exemption.

You determine the amount of annual exemption for any year of assessment for eachqualifying settlement by dividing the amount of the trust exemption by the number ofsettlements in the group, with a maximum of five.