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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
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Basic terms of trust law as applied to CGT: settled property

TCGA92/S68

`Settled property’ is defined in TCGA92/S68 as any property held in trust except property to which TCGA92/S60 (bare trusts - see below) applies.

Unit trusts, see CG41300+, are subject to special rules and not treated as trusts.

Section 60 applies to `bare trusts’, that is to say situations where the beneficiary is `absolutely entitled as against the trustee’, see CG34300, to the property held by the trustees. In such a situation the trustees are ignored for Capital Gains Tax purposes and the beneficiaries are treated as directly owning the relevant property or shares in it.