# Taxation of Chargeable Gains Act 1992, Paragraph 1A

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

(1) The following steps are to be taken for the purpose of calculating the section 1(3) amounts for a settlement that are outstanding at the end of a tax year (“the relevant tax year”).
Step 1
Find the section 1(3) amount for the settlement for the relevant tax year and earlier tax years, as reduced under section 87A as it applies for the relevant tax year and earlier tax years.
Step 2
This Step applies if, directly or indirectly by virtue of the matching of the section 1(3) amount for the settlement for a tax year (“the applicable year”) with a capital payment, chargeable gains are treated under section 87, 87K, 87L or 89(2) as accruing in the relevant tax year to an individual who is not chargeable to tax for that year.
Increase the section 1(3) amount for the applicable year (found under Step 1) by the amount of the chargeable gains.
(2) For the purposes of Step 1 of sub-paragraph (1) take into account the effect of section 90 in relation to any transfer of settled property from or to the trustees of the settlement made in or before the relevant tax year.
(3) For the purposes of this Schedule an individual is “chargeable to tax” for a tax year if, as respects that year, the individual is UK resident for the tax year (as determined in accordance with Chapter 1 of Part 1 of this Act).

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Source: https://www.legislation.gov.uk/ukpga/1992/12/schedule/4C/paragraph/1A (the official version)
Page: https://openlegislation.uk/taxation-of-chargeable-gains-act-1992/schedule-4C/paragraph-1A
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.