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HMRC internal manual

Capital Gains Manual

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HM Revenue & Customs
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Matching in a later year - example

2014-15

Trustees’ section 2(2) amount £30,000
   
Capital payment received beneficiary C £26,000

2013-14

Unmatched capital payment beneficiary A £5,000
   

This is a continuation of CG38715.

Section 87 gains

The capital payments received in 2014-15 are matched first against the section 2(2) amount for that year. Chargeable gains of £26,000 accrue to C in 2014-15 leaving an unmatched section 2(2) amount of £4,000.

The balance of the capital payment £5000 received in 2013-14 is matched against this gain. A gain of £4000 is treated as accruing to A in 2014-15. A’s unmatched capital payments received in 2013-14 are reduced to £1,000.