CG38615 - Trustees' gains - TCGA92/S13*

It is common for the trustees’ of non-resident settlement to hold the trust property in a non-resident holding company. Such a company may be within the scope of TCGA92/S13*. Section 13* provides that the gains accruing to a non-resident close company can be attributed to UK resident participators in the company. See CG57200+ for guidance on section 13*.

TCGA92/S13(10)* provides that section 13* gains can be attributed to non-resident trustees. These gains will form part of their section 2(2)* amount. It is not possible to claim double taxation relief on section 13* gains attributed to trustees. So even if the company is resident in a country with the UK has a tax treaty which exempts the gains those gains will still be included in the trustees’ section 2(2)* amount.

*These sections were re-written for disposals from 6 April 2019 see CG10150.