Q&As

When a settlement that is a 'protected settlement' for the purposes of capital gains tax becomes a 'qualifying settlement', how are the stockpiled gains taxed that have accrued within the settlement prior to the change?

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Published by a LexisNexis Private Client expert
Published on: 31 January 2017
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This Q&A only considers Capital gains tax (CGT) and not any other tax. In particular, it does not cover the transfer of assets abroad regime set out in Chapter 2, Part 13 of the Income Tax Act 2007 (ITA 2007), nor the Settlements code set out in Chapter 5, Part 5 of the Income Tax (Trading and Other Income) Act 2005 (ITTOIA 2005).

While the settlement remains a protected, non-qualifying settlement, trust gains for each year are calculated on the assumption that the trustees are UK resident under section 2(2)

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Settlement definition
What does Settlement mean?

The payment or collection of proceeds after trading a security. Settlement usually takes place some time after the deal and price are agreed.

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