Part 2

Income tax, corporation tax and capital gains tax
Chapter 4

Trusts with vulnerable beneficiary

Capital gains tax

UK resident vulnerable persons: amount of relief
31
1
Special capital gains tax treatment applies for the tax year in accordance with this section if the vulnerable person is UK resident for the tax year.
2
The trustees' liability to capital gains tax for the tax year is to be reduced by an amount equal to—
TQTG - VQTG
where—
TQTG
is the amount of capital gains tax to which the trustees would (apart from this Chapter) be liable for the tax year in respect of the qualifying trust gains, and
VQTG is the amount arrived at under subsection (3).
3
That amount is—
TLVA - TLVB
where—
TLVB
is the total amount of capital gains tax to which the vulnerable person is liable for the tax year, and
TL
VA
is what
TLVB
would be if the qualifying trust gains accrued to the vulnerable person (instead of to the trustees) and no allowable losses were deducted from the qualifying trust gains.
Words in s. 31 heading substituted (with effect in accordance with Sch. 2 para. 22 of the amending Act) by Finance Act 2008 (c. 9), Sch. 2 para. 16(3)
S. 31(2)(3) substituted (with effect in accordance with Sch. 2 para. 22 of the amending Act) by Finance Act 2008 (c. 9), Sch. 2 para. 16(2)
Word in s. 31(1) substituted (17.7.2013) by Finance Act 2013 (c. 29), Sch. 45 para. 151(4)