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Taxation of Chargeable Gains Act 1992

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Changes over time for: Section 86

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Version Superseded: 31/07/1998

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Point in time view as at 06/04/1992. This version of this provision has been superseded. Help about Status

Changes to legislation:

Taxation of Chargeable Gains Act 1992, Section 86 is up to date with all changes known to be in force on or before 07 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

86 Attribution of gains to settlors with interest in non-resident or dual resident settlements.U.K.

(1)This section applies where the following conditions are fulfilled as regards a settlement in a particular year of assessment—

(a)the settlement is a qualifying settlement in the year;

(b)the trustees of the settlement fulfil the condition as to residence specified in subsection (2) below;

(c)a person who is a settlor in relation to the settlement (“the settlor”) is domiciled in the United Kingdom at some time in the year and is either resident in the United Kingdom during any part of the year or ordinarily resident in the United Kingdom during the year;

(d)at any time during the year the settlor has an interest in the settlement;

(e)by virtue of disposals of any of the settled property originating from the settlor, there is an amount on which the trustees would be chargeable to tax for the year under section 2(2) if the assumption as to residence specified in subsection (3) below were made;

(f)paragraph 3, 4 or 5 of Schedule 5 does not prevent this section applying.

(2)The condition as to residence is that—

(a)the trustees are not resident or ordinarily resident in the United Kingdom during any part of the year, or

(b)the trustees are resident in the United Kingdom during any part of the year or ordinarily resident in the United Kingdom during the year, but at any time of such residence or ordinary residence they fall to be regarded for the purposes of any double taxation relief arrangements as resident in a territory outside the United Kingdom.

(3)Where subsection (2)(a) above applies, the assumption as to residence is that the trustees are resident or ordinarily resident in the United Kingdom throughout the year; and where subsection (2)(b) above applies, the assumption as to residence is that the double taxation relief arrangements do not apply.

(4)Where this section applies—

(a)chargeable gains of an amount equal to that referred to in subsection (1)(e) above shall be treated as accruing to the settlor in the year, and

(b)those gains shall be treated as forming the highest part of the amount on which he is chargeable to capital gains tax for the year.

(5)Schedule 5 (which contains provisions supplementary to this section) shall have effect.

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