Taxation of Chargeable Gains Act 1992 Schedule 4B paragraph 1

General scheme of this Schedule

Schedule 4B paragraph 1 sets out the general framework for an anti-avoidance rule that applies where trustees of non-resident or dual resident settlements make transfers of value that are linked with trustee borrowing, triggering a deemed disposal and reacquisition of their remaining chargeable assets.

• The Schedule targets so-called "flip-flop" avoidance schemes involving transfers of value by trustees who have borrowings
• It applies where the settlement falls within the rules attributing gains either to settlors (section 86) or to beneficiaries (section 87) in the year the transfer of value is made
• The transfer of value must be treated as linked with trustee borrowing under the detailed rules in the Schedule
• Where the Schedule applies, the trustees are deemed to dispose of and immediately reacquire the whole or a proportion of each chargeable asset that continues to form part of the settled property