# Taxation of Chargeable Gains Act 1992, Paragraph 12

Extent: E+W+S+N.I.

(1) This paragraph applies if—
(a) by virtue of section 1M, an amount of chargeable gains within section 86(1)(e) that accrued in a tax year (“year A”) to the trustees of a settlement would be treated as accruing to a person (“the settlor”) in the period of return, and
(b) after paragraph 8 has applied for the year of return, the section 1(3) amount for year A that is in the Schedule 4C pool for the settlement is less than the amount mentioned in paragraph (a).
(2) The amount of chargeable gains treated as mentioned in sub-paragraph (1)(a) as accruing to the settlor in the period of return is limited to the section 1(3) amount referred to in sub-paragraph (1)(b).
(4) Where the property comprised in the transferor settlement has at any time included property not originating from the settlor, only so much (if any) of any capital payment taken into account for the purposes of paragraph 8 above as, on a just and reasonable apportionment, is properly referable to property originating from the settlor shall be taken into account in computing the amount charged to beneficiaries.
(5) Expressions used in this paragraph and section 1M have the same meanings in this paragraph as in that section; and paragraph 8 of Schedule 5 shall apply for the construction of the references in sub-paragraph (4) above to property originating from the settlor as it applies for the purposes of that Schedule.

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Source: https://www.legislation.gov.uk/ukpga/1992/12/schedule/4C/paragraph/12 (the official version)
Page: https://openlegislation.uk/taxation-of-chargeable-gains-act-1992/schedule-4C/paragraph-12
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.