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HMRC internal manual

Capital Gains Manual

Disposal of interests in settlements: deemed disposal of interest

TCGA92/S76 (2)

Under TCGA92/S76 (2) the holder of an interest in settled property is treated as disposing of the interest when he, she or it becomes, as holder of that interest, absolutely entitled as against the trustees to settled property. A chargeable gain can accrue on that disposal if a chargeable gain would have accrued on any actual disposal of that interest under CG38012. The consideration for such a deemed disposal is the market value of the property received by the beneficiary less any CGT charge on the trustees under TCGA92/S71 (1), see CG37100. The charge on the beneficiary is quite separate from the deemed disposal by the trustees.