Legal background to trusts and estates: trustees in bankruptcy
Trustees administer and distribute a bankrupt’s assets for the benefit of the bankrupt’s creditors. Their primary duty is to the creditors. They settle the creditors’ claims, then pass any surplus assets to the bankrupt.
HMRC will not regard the trustee in bankrupcy as a trustee of a settlement for income tax purposes, or for capital gains tax purposes (CG20500).