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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
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Transfer between settlements before 6 April 2008 - transferee settlement

TCGA92/Sch7para121

Follow the general rules in TCGA92/Sch7para120 in respect of the transferee settlement’s own unmatched section 2(2) amounts for the year of transfer and earlier tax years to calculate unmatched section 2(2) amounts for those years. For this purpose:

  • in Step 1 of paragraph 120 include section 2(2) amounts for the year of transfer and earlier years only, and
  • in Step 2 of paragraph 120 treat the ‘total deemed gains’ as being only those accruing to beneficiaries in the year before the year of transfer and earlier years.

Then apply the rules in section 90 to the transfer of the settled property. Add to the unmatched section 2(2) amounts the unmatched section 2(2) amounts transferred from the transferor settlement.

Go back and apply the general rules in paragraph 120 to arrive at final figures of unmatched section 2(2) amounts of the transferee settlement for 2007-08 and earlier years. But in doing this calculation:

  • treat the section 2(2) amounts for the year of transfer and earlier years as those unmatched section 2(2) amounts calculated in the previous two paragraphs, and
  • include in ‘total deemed gains’ in Step 2 of paragraph 120 only the section 87 gains from the year of transfer to 2007-08 inclusive and any unmatched gains for the years up to the year of transfer.