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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
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Annual exempt amount: trust exemption: excluded settlement

TCGA92/SCH1/PARA2 (7)

An `excluded settlement’ was defined for years up to and including 2005-06 as:

  • any settlement the trustees of which are treated as not resident and not ordinarily resident in the United Kingdom for the whole of a year of assessment, see CG33370+
  • any settlement where the assets are held for charitable purposes only and cannot become applicable for other purposes,
  • a pension fund for overseas employees, ICTA88/S615 (3)
  • any approved retirement or dependant’s annuity trust scheme, ICTA88/S620 and ICTA88/S621
  • an approved occupational pension scheme or statutory retirement benefit scheme, Chapter 1 Part XIV ICTA 1988 and
  • sponsored superannuation schemes within ICTA88/S624.

For 2006-07 onwards an excluded settlement is:

  • any settlement the trustees of which are treated as not resident and not ordinarily resident* in the United Kingdom for the whole of a year of assessment, see CG33370+,
  • any settlement where the assets are held for charitable purposes only and cannot become applicable for other purposes,
  • a registered pension scheme, see FA2004/S149 +,
  • a pension fund for overseas employees, see ICTA88/S615 (3), or
  • an approved occupational pension scheme within the meaning of FA2004/S150 (5) that is not a registered pension scheme.

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