Taxation of Chargeable Gains Act 1992 section 82

Past trustees: liability for tax

Section 82 deals with the personal liability of former trustees for unpaid capital gains tax when trustees of a settlement migrate (cease to be UK resident) and fail to pay the tax triggered by that migration.

• Where trustees cease to be UK resident and capital gains tax arising under section 80 remains unpaid after six months, HMRC may pursue former trustees for the outstanding tax and interest.
• HMRC has up to three years from the date the tax liability is finally determined to serve a notice on a former trustee requiring payment within 30 days.
• A former trustee can escape liability only if they left the trusteeship before the end of the relevant period and can demonstrate that, at the time they stepped down, there was no proposal for the trustees to leave the UK.
• Any amount a former trustee pays under such a notice may be recovered from the migrating trustees, but cannot be deducted in computing income, profits or losses for any tax purpose.