CG18096 - Annual exempt amount: trust exemption: restrictions

TCGA92/SCH1/PARA2 (4)

Trustees of settlements made on or after 7 June 1978 are entitled to the trust exemption, but the amount of the exemption is subject to restriction if the settlor has made two or more settlements after 6 June 1978.

Where the settlor has made more than one settlement after 6 June 1978, each settlement which exists at any time during a year of assessment is regarded as a qualifying settlement within a group of settlements unless it is an `excluded’ settlement, see CG18112 - CG18113, or qualifies for the main exemption.

You determine the amount of annual exemption for any year of assessment for each qualifying settlement by dividing the amount of the trust exemption by the number of settlements in the group, with a maximum of five.