Taxation of Chargeable Gains Act 1992 section 98A

Settlements with foreign element: information

Section 98A introduces Schedule 5A, which sets out the information requirements that apply to settlements (trusts) that have a foreign element, such as non-UK resident trustees or non-UK resident settlors.

• This section was inserted into the Taxation of Chargeable Gains Act 1992 by the Finance Act 1994 and took effect from 3 May 1994.
• Its sole purpose is to give legal effect to Schedule 5A, which contains the detailed rules on information obligations relating to settlements with a foreign element.
• A "settlement with a foreign element" generally means a trust arrangement where the trustees, the settlor, or certain beneficiaries are not resident in the UK, or where trust assets are situated outside the UK.
• The information provisions in Schedule 5A are designed to ensure that HMRC has visibility of chargeable gains arising in connection with such offshore or partly offshore trust structures.