{
  "url": "https://openlegislation.uk/taxation-of-chargeable-gains-act-1992/section-87",
  "json_url": "https://openlegislation.uk/taxation-of-chargeable-gains-act-1992/section-87.json",
  "legislation": "ukpga/1992/12",
  "legislation_title": "Taxation of Chargeable Gains Act 1992",
  "legislation_url": "https://openlegislation.uk/taxation-of-chargeable-gains-act-1992",
  "path": "section/87",
  "kind": "section",
  "number": "87",
  "heading": "Non-UK resident settlements: attribution of gains to beneficiaries",
  "text": "(1) This section applies to a settlement for a tax year (“the relevant tax year”) if there is no time in that year when the trustees are resident in the United Kingdom.\n(2) Chargeable gains are treated as accruing in the relevant tax year to a beneficiary of the settlement who has received a capital payment from the trustees in the relevant tax year or any earlier tax year if all or part of the capital payment is matched (under section 87A as it applies for the relevant tax year) with the section 1(3) amount for the relevant tax year or any earlier tax year.\n(2A) If the relevant tax year is a split year as respects the beneficiary, the gains are treated as accruing in the UK part of that year.\n(3) The amount of chargeable gains treated as accruing is equal to—\n(a) the amount of the capital payment, or\n(b) if only part of the capital payment is matched, the amount of that part.\n(4) The section 1(3) amount for a settlement for a tax year for which this section applies to the settlement is—\n(a) the amount upon which the trustees of the settlement would be chargeable to tax under section 1(3) for that year if they were resident ... in the United Kingdom in that year, or\n(b) if section 86 applies to the settlement for that year, the amount mentioned in paragraph (a) minus the total amount of chargeable gains treated under that section as accruing in that year.\n(5) The section 1(3) amount for a settlement for a tax year for which this section does not apply to the settlement is nil.\n(5A) Where (apart from this subsection) the amount mentioned in subsection (4)(a) would include a chargeable gain or allowable loss to which section 1A(3)(b) or (c) applies (disposals by non-UK residents within the charge to capital gains tax), so much of the gain or loss as would be so included is to be disregarded for the purposes of determining the section 1(3) amount.\n(5B) Where (apart from this subsection)—\n(a) the amount mentioned in subsection (4)(a) would include an amount of chargeable gains accruing by virtue of the trustee’s entitlement to a sum of carried interest, and\n(b) at the time when those chargeable gains accrue, income tax is chargeable by virtue of section 23I of ITTOIA 2005 in respect of the sum of carried interest,\nthe amount of the gains is to be disregarded for the purposes of determining the section 1(3) amount.\n(5C) In subsection (5B) and section 87BA—\n(a) “carried interest” has the same meaning as in section 23I of ITTOIA 2005 (see Part 1 of Schedule A1 to that Act), and\n(b) that definition has effect as if references to a sum arising to an individual included a reference to a sum arising to the trustees.\n(6) For the purposes of this section a settlement arising under a will or intestacy is treated as made by the testator or intestate at the time of death.\n(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(8) See also paragraph 4 of Schedule D1 (foreign gain claims: capital payments ignored for the purposes of this section and Schedule 4C).",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Ss. 87-87C substituted for s. 87 (with effect in accordance with Sch. 7 para. 115 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 108 (with Sch. 7 paras. 116-119)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in s. 87(1) substituted (with effect in accordance with Sch. 46 para. 112 of the amending Act) by Finance Act 2013 (c. 29), Sch. 46 para. 92(2)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in s. 87(2) substituted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 35(2)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "S. 87(2A) inserted (with effect in accordance with Sch. 10 para. 1(13) of the amending Act) by Finance Act 2018 (c. 3), Sch. 10 para. 1(4)(a)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Words in s. 87(4) substituted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 35(3)(a)"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Words in s. 87(4)(a) substituted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 35(3)(b)"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "Words in s. 87(4)(a) omitted (with effect in accordance with Sch. 46 para. 112 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 46 para. 92(3)"
    },
    {
      "type": "F",
      "label": "F8",
      "text": "Words in s. 87(5) substituted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 35(4)"
    },
    {
      "type": "F",
      "label": "F9",
      "text": "S. 87(5A) substituted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 35(5)"
    },
    {
      "type": "F",
      "label": "F10",
      "text": "S. 87(5B)(5C) substituted for s. 87(5B) (for the tax year 2026-27 and subsequent tax years (but in relation to investment management services whenever performed)) by Finance Act 2026 (c. 11), s. 58(6), Sch. 11 para. 2(6)"
    },
    {
      "type": "F",
      "label": "F11",
      "text": "S. 87(7) omitted (with effect in accordance with Sch. 10 para. 1(13) of the amending Act) by virtue of Finance Act 2018 (c. 3), Sch. 10 para. 1(4)(b)"
    },
    {
      "type": "F",
      "label": "F12",
      "text": "S. 87(8) inserted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), Sch. 12 paras. 57, 70(1)"
    },
    {
      "type": "C",
      "label": "C1",
      "text": "Ss. 87, 87A, 87C-90 applied (with modifications) by Income and Corporation Taxes Act 1988 (c. 1), s. 762(3) (as substituted (with effect in accordance with Sch. 7 para. 98 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 93(3))"
    },
    {
      "type": "C",
      "label": "C2",
      "text": "Ss. 87-89 modified (21.7.2008) by Finance Act 2008 (c. 9), Sch. 7 para. 125(2)"
    },
    {
      "type": "C",
      "label": "C3",
      "text": "Ss. 87-90A applied (with modifications) (with effect in accordance with art. 1(2)(3), Sch. 1 of the amending S.I.) by The Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), regs. 1(1), 20(3)(4)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/1992/12/section/87",
    "retrieved_at": "2026-10-29T09:36:15.270072+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}