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HMRC internal manual

Trusts, Settlements and Estates Manual

From
HM Revenue & Customs
Updated
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Trust income and gains: the charge on trustees - which trustee is chargeable - periods to 5 April 2006

Income tax

Income tax is chargeable on the trustee to whom the income arises, or any subsequent trustee.

Capital gains tax

Capital gains tax is normally payable by the trustee who makes the self assessment return.

The persons liable are, under TCGA92/S65, any of ‘the relevant trustees’. Sub-paragraph (4) defines these as the trustees in office during the year the gains arose and any subsequent trustees.

There may be a problem if there are separate funds with different trustees but only one settlement for capital gains tax purposes. The gains of all funds must be included on a single return.