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HMRC internal manual

Capital Gains Manual

Guidance in TSEM: conditions for special rules to apply - vulnerable persons

The main guidance on the legislation affecting settlements with vulnerable beneficiaries is to be found in TSEM3400+.

TSEM3420 (FA2005/S23(7)) defines vulnerable person; such persons may be either

  • disabled persons meeting particular conditions, see TSEM3421+ (FA2005/S38(1)), or TSEM3425+ (FA2005/S38(2)) if the person is neither resident nor ordinarily resident*. The tests largely reflect those in force for the annual exempt amount (CG18050+) except that they extend to situations where the person ceases to receive the particular allowance because he is in care etc.(FA2005/S38(3)) or
  • relevant minors, see TSEM3423 (FA2005/S39).

*For 2013-14 and subsequent years ordinary residence does not need to be considered.