TSEM6280 - Legal background to trusts and estates: trustees in bankruptcy
Trustees administer and distribute a bankrupt’s assets for the benefit of the bankrupt’s creditors. »Ê¹ÚÌåÓýappir primary duty is to the creditors. »Ê¹ÚÌåÓýappy settle the creditorsâ€� claims, then pass any surplus assets to the bankrupt.
HMRC will not regard the trustee in bankrupcy as a trustee of a settlement for income tax purposes, or for capital gains tax purposes (CG20500).