CG38400 - What is a non-resident settlement?

The content in this manual covers a much higher level of detail compared to say a Helpsheet supporting the Self Assessment Tax Return. If you are looking for an introduction to the main rules for a particular year then search for HS299 on gov.uk and select the year you are considering.

In this manual the term non-resident settlement means a settlement in which the trustees are not resident in the UK throughout the tax year. If trustees are resident in the UK for part of the tax year, even one day, they are liable to Capital Gains Tax for the whole year,TCGA92/S2(1A)(c)*

Example

At 6 April 2014 the trustees of the AB family settlement are all resident in Guernsey. On 3 April 2015 those trustees resign and are replaced by trustees resident in the UK. The residence of the settlement changes from Guernsey to the UK. The trustees are chargeable to Capital Gains Tax on gains accruing at any time during the tax year 2014-15.

*This was re-written for disposals from 6 April 2019 to section 1A see CG10150.