Taxation of Chargeable Gains Act 1992 Schedule 4C paragraph 1A

Outstanding section 1(3) amounts

Section 1A sets out how to calculate the outstanding trust gains (the section 1(3) amounts) for a non-resident settlement at the end of a given tax year, including adjustments where gains have been matched to capital payments received by individuals who are not liable to UK tax.

• The outstanding gains for a settlement are determined by taking the net chargeable gains (after losses) for the current and all earlier tax years, reduced by any amounts already matched to capital payments under the attribution rules
• Where gains have been matched to capital payments but attributed to an individual who is not UK resident (and therefore not chargeable to tax), those gains are added back to the outstanding balance for the year in question
• Any transfers of settled property between settlements made in or before the relevant tax year must be taken into account when calculating the outstanding amounts
• For these purposes, an individual is considered "chargeable to tax" for a tax year only if they are UK resident for that year