CG34700 - Trusts and Capital Gains Tax: Settlor trusts: Overview

There are special Capital Gains Tax rules to deal with the case where the person who made the settlement (the `settlor’) or the settlor’s spouse or civil partner is entitled to benefit or does in fact benefit from a non-UK resident settlement see CG38430+.

For a UK residentsettlement that is settlor interested any Capital Gains Tax is charged on the trustees for 2008-09 and later years. General guidance on Trust Income and gains is in the Trusts, Settlements and Estates Manual see TSEM3000+.

The detail of the Capital Gains Tax rules that applied for the years to 2007-08 are no longer included in this manual.

Special restrictions to the gifts hold-over provisions of TCGA92/S165 and TCGA92/S260, set out in TCGA92/S169B onwards, apply in the case of transfers to settlor-interested settlements.

HMRC Trusts is responsible for calculating the gains of UK-resident trusts.