[2024] UKUT 00319 (TCC)

Capital gains tax is charged on chargeable gains computed in accordance with the TCGA and accruing to a person on the disposal of assets (s1(1) TCGA).

Provision for the treatment of settled property is made in Part III TCGA. Section 69(1) TCGA specifies that (a) the trustees of a settlement “shall for the purposes of this Act be treated as being a single and continuing body of persons (distinct from the persons who may from time to time be the trustees)”; and (b) that body “shall be treated as being resident and ordinarily resident in the United Kingdom unless the general administration of the trusts is ordinarily carried on outside the United Kingdom and the trustees or a majority of them for the time being are not resident or not ordinarily resident in the United Kingdom.”

Section 80 TCGA addresses the situation where trustees cease to be resident in the UK. As it was in force for the 2004/05 tax year it relevantly provided as follows:

Trustees were required to file a return for tax year 2004/05 not later than 31 January 2006 (ss8A(1) and (1A) Taxes Management Act 1970 (“TMA”)). The difference between the amount of capital gains tax contained in the trustees’ self-assessment for a tax year and the aggregate of any payments on account made by them in respect of that year “is payable or repayable on or before the 31st January next following the year of assessment” (ss59B(1) to (4) TMA).