Capital payments - absolute entitlement
A beneficiary is most likely to become absolutely entitled to trust property when they reach an age specified in the trust deed or on the death of a life tenant. See CG37000+ for full guidance on absolute entitlement and TCGA92/S60. As many non-resident settlements are discretionary there may be limited occasions when section 60 applies.
The ordinary Capital Gains Tax rules apply to the event itself. So if absolute entitlement occurs on the death of the life tenant TCGA92/S73 may apply. The deemed disposal would not give rise to a gain and the trustees would acquire the property at market value at the date of death. The capital payment has to be considered entirely separately. The beneficiary who has become absolutely entitled has received a capital payment and a TCGA/S87 gain will accrue when that payment is matched against section 2(2) amounts.