Paragraph 5C F1

(1)

This paragraph applies if—

(a)

the trustees of the settlement made (at any time) an election under paragraph 126(1) of Schedule 7 to the Finance Act 2008 (remittance basis: capital gains rebasing), and

(b)

an amount of chargeable gains would (apart from this paragraph) be treated as accruing to the settlor under section 86(4) in a tax year (“the relevant tax year”).

(2)

The settlor is not charged to capital gains tax on so much of the chargeable gains as exceeds the relevant proportion of those gains.

(3)

For that purpose “the relevant proportion” is—

\frac{A}{B}

where—

A is the amount that would be treated under section 86(4) as accruing to the settlor in the relevant tax year if immediately before 6 April 2008 every relevant asset had been sold by the trustees and immediately re-acquired by them at its market value at that time, and
B is the amount mentioned in sub-paragraph (1)(b).

(4)

In sub-paragraph (3), “relevant asset” means an asset—

(a)

that was disposed of in the relevant tax year, and

(b)

that was comprised in the settlement from the beginning of 6 April 2008 until its disposal.

Annotations

Textual amendments

F1: Sch. 5 para. 5C and cross-heading inserted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), Sch. 12 paras. 69(4), 70(1)