»Ê¹ÚÌåÓýapp

TCGA92/S69

»Ê¹ÚÌåÓýapp Taxation of Chargeable Gains Act treated the trustees as a single and continuing body of persons. That body was resident in the United Kingdom for Capital Gains Tax unless:

• all, or a majority, of the trustees were regarded as not resident in the UK and
• the general administration of the trust was ordinarily carried on outside the UK.

If there were an equal number of resident and non-resident trustees, the trust was resident for Capital Gains Tax purposes.

Normally it is a matter of fact where a trust is administered - there is guidance at CG38200SUBC.

If trustees as a body were regarded as resident for any part of a year, they were potentially taxable on any gains made for the full year. Trustees were not taxed on a ‘split year� basis for Capital Gains Tax purposes.

Professional trustee resident in the UK

It was possible for a UK resident professional trustee to be regarded as non-resident for Capital Gains Tax purposes.

»Ê¹ÚÌåÓýapp trustee must:

• have been carrying on a business that includes the management of trusts, and
• acted as trustee in the course of that business. This would usually have been an accountant, solicitor or bank. »Ê¹ÚÌåÓýapp trustee must not have been acting as an employee or in a personal, rather than a professional, capacity.

Whenever funds were settled, the settlor must have been:

• not resident in the UK and
• not ordinarily resident in the UK and
• not domiciled in the UK

If the trust arose under a will or intestacy, the deceased must have been:

• not resident in the UK and
• not ordinarily resident in the UK and
• not domiciled in the UK

at the date of death.

In such a case, where all, or a majority, of trustees were regarded as not resident in the UK, the general administration of the trust would be treated as ordinarily administered outside the UK.