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HMRC internal manual

Capital Gains Manual

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HM Revenue & Customs
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Trustees' gains - TCGA92/S13

It is common for the trustees’ of non-resident settlement to hold the trust property in a non-resident holding company. Such a company may be within the scope of TCGA92/S13. Section 13 provides that the gains accruing to a non-resident close company can be attributed to UK resident participators in the company. See CG57200+ for guidance on section 13.

TCGA92/S13(10) provides that section 13 gains can be attributed to non-resident trustees. These gains will form part of their section 2(2) amount. It is not possible to claim double taxation relief on section 13 gains attributed to trustees. So even if the company is resident in a country with the UK has a tax treaty which exempts the gains those gains will still be included in the trustees’ section 2(2) amount.