TCGA92/S90 - all property transferred for nil consideration - example
All the settled property of the transferor settlement is transferred to the transferee settlement for nil consideration in 2012-13. No capital payments have been made out of the transferor settlement. The transferor settlement had the following gains made by the trustees:
|2005-06||Trustees’ gains (section 2(2) amount)||£20,000|
|2012-13||Section 2(2) amount on transfer of all settled property||£75,000|
The transferee settlement acquires these unmatched section 2(2) amounts. They are added to any unmatched section 2(2) amounts it already has for the years 2005-06 and 2012-13. This applies whatever the residence status of the transferee settlement.
The unmatched section 2(2) amounts in the transferor settlement are now reduced to Nil.