CG34700 - Trusts and Capital Gains Tax: Settlor trusts: Overview
There are special Capital Gains Tax rules to deal with the case where the person who made the settlement (the `settlor’) or the settlor’s spouse or civil partner is entitled to benefit or does in fact benefit from a non-UK resident settlement see CG38430P.
For a UK resident settlement that is settlor interested any Capital Gains Tax is charged on the trustees for 2008 to 2009 and later years. General guidance on Trust Income and gains is in the Trusts, Settlements and Estates Manual see TSEM3000.
The detail of the Capital Gains Tax rules that applied for the years to 2007 to 2008 are no longer included in this manual.
Special restrictions to the gifts hold-over provisions of section 165 of the Taxation of Chargeable Gains Act (TCGA) 1992 and section 260 TCGA 1992, set out in section 169B TCGA 1992 onwards, apply in the case of transfers to settlor-interested settlements.
HMRC Trusts is responsible for calculating the gains of UK-resident trusts.