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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Disposal of interests in settlements: exceptions to general rule

The general rule in CG38010 does not apply where

the person disposing of the interest acquired it by purchase, and is not the person for whose benefit the interest was created, see Example in CG38030, or

the interest being disposed of was acquired by purchase by a previous holder, see Example in CG38030, or

the trustees of the settlement concerned are neither resident nor ordinarily resident*in the UK, see CG38060, or

the disposal took place at a time when the trustees were resident or ordinarily resident* in the UK but they subsequently ceased to be so before 19 March 1991, see CG38061 - 38063.

The acquisition of an interest in exchange for another interest in the same settlement is not to be regarded as by way of purchase.

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