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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
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Residence of a settlement

Trustees are a deemed single person

For income tax and Capital Gains Tax purposes the trustees of a settlement are treated as a single person separate from the persons who are actually the trustees at any given time, TCGA92/S68. This rule also applies to non-resident settlements.

Residence of trustees

The residence of the settlement is determined by the residence of the persons who are actually the trustees at any given time, TCGA92/S69.

For the year 2007-08 onwards the tests for determining the residence of a settlement for income tax and Capital Gains Tax purposes is the same.

  • if all the actual trustees are resident in the UK the settlement is resident in the UK
  • if all the actual trustees are not resident in the UK the settlement is not resident in the UK
  • if some of the actual trustees are UK resident and some are non-resident the settlement will be UK resident if the settlor was UK resident or domiciled when they made the settlement or at the date of death in the case of a will trust.

The usual tax rules apply to determine the residence of the persons who are actually trustees; the statutory residence test for individuals and the company taxation rules for corporate trustees. See CG26540 for guidance on the statutory residence test. In certain circumstances non-resident professional trustees may be treated as UK resident for the purposes of determining the residence of the settlement.

For detailed guidance on the residence of trustees see TSEM10000+.