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HMRC internal manual

Trusts, Settlements and Estates Manual

HM Revenue & Customs
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Non-resident trusts: residence rules: what is a non-resident trust?

A non-resident trust is a trust which under the income tax and capital gains tax rules is not resident in the United Kingdom. The Income Tax rules for deciding the residence status of a trust differed from the Capital Gains Tax rules for periods to 5 April 2007. From 6 April 2007 there is a common residence test for both taxes.

For guidance on the residence rules for trusts for periods to 5 April 2007 see TSEM10010 - TSEM10015.

For guidance on the residence rules for trusts for periods from 6 April 2007 see TSEM10020 - TSEM10030.

The Income Tax and Capital Gains Tax consequences for trustees, settlors and beneficiaries of non-resident trusts are considered in:

TSEM10100+ - new non-resident trust

TSEM10200+ - trustees’ chargeability

TSEM10300+ - settlor’s chargeability

TSEM10400+ - beneficiary’s chargeability

For Inheritance Tax purposes, the residence of a trust is relevant only in determining whether or not the settlor can be liable for the payment of any tax - see IHTM30111.