Part 2

Income tax, corporation tax and capital gains tax
Chapter 4

Trusts with vulnerable beneficiary

Capital gains tax

Non-UK resident vulnerable persons: amount of relief
32
1
Special capital gains tax treatment applies for the tax year in accordance with this section if the vulnerable person is non-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 trusts 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 would be liable for the tax year if the vulnerable person's taxable amount for the tax year
...
were equal to the vulnerable person's deemed
CGT
taxable amount for the tax year (if any), and
TL
VA
is what
TLVB
would be if the vulnerable person's taxable amount for the tax year
...
were equal to the aggregate of the vulnerable person's deemed
CGT
taxable amount for the tax year (if any) and the amount of the qualifying trust gains.
3A
For the purposes of this section “the vulnerable person’s taxable amount for the tax year” means the amount on which that person would be chargeable to capital gains tax for the tax year if no account were taken of section
1K
of
TCGA
1992.
4
For the purposes of this section the vulnerable person's deemed
CGT
taxable amount for the tax year is to be determined in accordance with Schedule 1.
Words in s. 32(2) substituted (with effect in accordance with Sch. 2 para. 22 of the amending Act) by Finance Act 2008 (c. 9), Sch. 2 para. 17(2)
S. 32(3)(4) inserted (with effect in accordance with Sch. 2 para. 22 of the amending Act) by Finance Act 2008 (c. 9), Sch. 2 para. 17(3)
Word in s. 32(1) substituted (17.7.2013) by Finance Act 2013 (c. 29), Sch. 45 para. 151(5)
S. 32(3A) inserted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 97(3)
Words in s. 32(3) omitted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by virtue of Finance Act 2019 (c. 1), Sch. 1 para. 97(2)