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HMRC internal manual

Capital Gains Manual

Assessment and procedures: trustees: rates


2016-17 and later years

For 2016-17 If entrepreneurs’ relief is claimed the gain is taxed at 10%. If the disposal does not qualify for entrepreneurs’ relief it is taxed at 20% unless it is an upper rate gain which should be taxed at 28%. Upper rate gains are:

  • residential property gains (see section4BB)
  • NRCGT gains (see section 14D) and
  • gains accruing under section 103KA(2) or (3) (carried interest)


2010-11 and later years

For 2010-11 the rate of Capital Gains Tax depends on when the disposal was made. For disposals made on or before 22 June 2010 the gains are taxed at 18%. For disposals made on or after 23 June 2010 the rate of tax depends on whether the disposal qualified for entrepreneurs’ relief. If entrepreneurs’ relief is claimed the gain is taxed at 10%. If the disposal does not qualify for entrepreneurs’ relief it is taxed at 28%.

For 2011-12 onwards gains on which entrepreneurs’ relief is claimed are taxed at 10% and other gains are taxed at 28%.

2008-09 and 2009-10

For 2008-09 and 2009-10 trustees of all UK resident settlements are charged on their gains after the appropriate annual exempt amount (CG18011) and allowable losses, at 18%.

The charge on the settlor of a settlor-interested UK resident settlement, see CG34700, does not apply for 2008-09 onwards.

1998-99 to 2007-08


For 1998-99 up to 2007-08 inclusive the rate applicable to trusts (see CG35210) applies to all resident trustees, unless they are trustees of settlor interested settlements (see CG34700). See TCGA92/S4(1AA), as introduced in Finance Act 1998.

1988-89 to 1997-98

From 1988-89 to 1997-98 inclusive the normal position was that resident trustees were assessed on all their chargeable gains, after deduction of the annual exempt amount, at the basic rate, see TCGA92/S4(1). This was subject to two important exceptions.

  • The trustees of an `ACCUMULATION OR DISCRETIONARY SETTLEMENT’ were chargeable on all their chargeable gains after the annual exempt amount at `the rate applicable to trusts’.
  • The trustees of a settlement under which the settlor or settlor’s spouse can or does benefit are not charged on gains on the property `originating from’ the settlor. Instead the amounts of those gains (after deducting any available allowable losses on such property) are added to those of the settlor and assessed on him or her, see CG34700+.

Before 1988-89

The annual exempt amount was introduced for trustees in 1980-81. See CG18090+. There was a limited period of transitional relief, for gains below £1,250 for 1977-78 to 1979-80 inclusive.

Subject to this, from 1965-66 to 1987-88 inclusive, the trustees of resident settlements were assessed in all circumstances on their total chargeable gains at 30%.