Taxation of Chargeable Gains Act 1992 section 89

Migrant settlements etc.

Section 89 deals with settlements that change their residence status between UK resident and non-resident, ensuring that the rules for taxing beneficiaries on trust gains cannot be avoided by switching the trustees' residence.

• Capital payments received by beneficiaries during a UK resident period are generally disregarded when matching against gains arising in a subsequent non-resident period, unless the payment was made in anticipation of a disposal during the non-resident period.
• When a non-resident settlement becomes UK resident and there were unmatched trust gains at the end of the non-resident period, capital payments made to beneficiaries during the new resident period can be matched against those earlier non-resident gains, triggering a tax charge on the beneficiary.
• The standard matching rules and supplementary provisions that apply to non-resident settlements also apply when determining whether capital payments in the resident period are matched with gains from the earlier non-resident period.
• The remittance basis rules apply to gains charged on beneficiaries under this section in the same way as they apply to gains charged under the main non-resident settlement rules.