CG38722 - Charge on beneficiary of non-resident settlement – TCGA92/S87: Matching in the same year - example - the rules for 2008-09 to 2017-18
2013-14
| - | - | Amount | Amount |
|---|---|---|---|
| Trustees section 2(2) amount | - | - | £50,000 |
| Capital payments | beneficiary A | £30,000 | - |
| - | beneficiary B | £30,000 | £60,000 |
A is UK resident. B is non-resident.
Each beneficiary is treated as receiving a relevant proportion of the 2013-14 section 2(2) amount.
£50,000 multiplied by £30,000 divided by £60,000 = £25,000
Section 87 gains
A and B are both treated as accruing chargeable gains of £25,000 in 2013-14. Only A is chargeable to Capital Gains Tax on those gains. If A is non-domiciled they can claim the remittance basis on the gain, CG38805.
Each beneficiary has an unmatched capital payment of £5,000, £30,000 - £25,000. Assuming there are no unmatched section 2(2) amounts for earlier years these capital payments will be matched against section 2(2) amounts of a later year.
The trustees section 2(2) amount for 2013-14 is reduced to nil.