Part III

Individuals, partnerships, trusts and collective investment schemes etc
Chapter II

Settlements

General provisions

Trustees of settlements.
69
1
For the purposes of this Act the trustees of a settlement shall, unless the context otherwise requires, together be treated as if they were a single person (distinct from the persons who are trustees of the settlement from time to time).
2
The deemed person referred to in subsection (1) shall be treated for the purposes of this Act as resident
... in the United Kingdom at any time when a condition in subsection (2A) or (2B) is satisfied.
2A
Condition 1 is that all the trustees are resident in the United Kingdom.
2B
Condition 2 is that—
a
at least one trustee is resident in the United Kingdom,
b
at least one is not resident in the United Kingdom, and
c
a settlor in relation to the settlement was resident
...
... in the United Kingdom at a time which is a relevant time in relation to him.
2C
In subsection (2B)(c) “
relevant time
” in relation to a settlor—
a
means, where the settlement arose on the settlor's death (whether by will, intestacy or otherwise), the time immediately before his death, and
b
in any other case, means a time when the settlor made the settlement (or was treated for the purposes of this Act as making the settlement);
and, in the case of a transfer of property from Settlement 1 to Settlement 2 in relation to which section 68B applies, “
relevant time
” in relation to a settlor of the transferred property in respect of Settlement 2 includes any time which, immediately before the time of the disposal by the trustees of Settlement 1, was a relevant time in relation to that settlor in respect of Settlement 1.
2CA
In relation to a settlement—
a
that arose before 6 April 2025 on the settlor’s death, or
b
that the settlor made (or was treated for the purposes of this Act as making) before 6 April 2025,
subsection (2B)(c) has effect as if after “resident” there were inserted “or domiciled”.
2D
A trustee who is not resident in the United Kingdom shall be treated for the purposes of subsections (2A) and (2B) as if he were resident in the United Kingdom at any time when he acts as trustee in the course of a business which he carries on in the United Kingdom through a branch, agency or permanent establishment there.
2DA
A trustee who is resident in the United Kingdom for a tax year is to be treated for the purposes of subsections (2A) and (2B) as if he or she were not resident in the United Kingdom for that year if—
a
the trustee is an individual,
b
the individual becomes or ceases to be a trustee of the settlement during the tax year,
c
that year is a split year as respects the individual, and
d
in that year, the only period when the individual is a trustee of the settlement falls wholly within the overseas part of the year.
2DB
Subsection (2DA) is subject to subsection (2D) and, accordingly, an individual who is treated under subsection (2DA) as not resident is, in spite of that, to be regarded as resident whenever the individual acts as mentioned in subsection (2D).
2E
If the deemed person referred to in subsection (1) is not treated for the purposes of this Act as resident
in the United Kingdom, then for the purposes of this Act it is treated as being not resident in the United Kingdom
.
2F
Section 835BA of ITA 2007 (deemed domicile) applies for the purposes of subsection
(2CA)
.
3
For the purposes of this section, and of sections 71(1) and 72(1), where part of the property comprised in a settlement is vested in one trustee or set of trustees and part in another (and in particular where settled land within the meaning of the Settled Land Act 1925 is vested in the tenant for life and investments representing capital money are vested in the trustees of the settlement), they shall be treated as together constituting and, in so far as they act separately, as acting on behalf of a single body of trustees.
4
If tax assessed on the trustees, or any one trustee, of a settlement in respect of a chargeable gain accruing to the trustees is not paid within 6 months from the date when it becomes payable by the trustees or trustee, and before or after the expiration of that period of 6 months the asset in respect of which the chargeable gain accrued, or any part of the proceeds of sale of that asset, is transferred by the trustees to a person who as against the trustees is absolutely entitled to it, that person may at any time within 2 years from the time when the tax became payable be assessed and charged (in the name of the trustees) to an amount of capital gains tax not exceeding tax chargeable on an amount equal to the amount of the chargeable gain and, where part only of the asset or of the proceeds was transferred, not exceeding a proportionate part of that amount.
1925 c. 18.
Words in s. 69(2B)(c) 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. 82(3)
Words in s. 69(2E) substituted (with effect in accordance with Sch. 46 para. 112 of the amending Act) by Finance Act 2013 (c. 29), Sch. 46 para. 82(4)
S. 69(2F) inserted (with effect in accordance with Sch. 8 para. 6(2) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 8 para. 6(1)
Word in Pt. 3 heading inserted (with effect in accordance with Sch. 22 para. 12 of the amending Act) by Finance Act 2009 (c. 10), Sch. 22 para. 9; S.I. 2010/670, art. 2
Words in s. 69(2) 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. 82(2)
S. 69(2DA)(2DB) inserted (with effect in accordance with Sch. 45 para. 153(2) of the amending Act) by Finance Act 2013 (c. 29), Sch. 45 para. 102
S. 69(1)-(2E) substituted for s. 69(1)(2) (with effect in accordance with Sch. 12 para. 2(2) of the amending Act) by Finance Act 2006 (c. 25), Sch. 12 para. 2(1)
S. 69(2CA) inserted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), s. 40(4), Sch. 9 para. 12(3)
Words in s. 69(2B)(c) omitted (for the tax year 2025-26 and subsequent tax years) by virtue of Finance Act 2025 (c. 8), s. 40(4), Sch. 9 para. 12(2)
Word in s. 69(2F) substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), s. 40(4), Sch. 9 para. 12(4)