188ÌåÓý

If capital sums are paid to the settlor or to his or her spouse or civil partner by the trustees of a non-resident trust, you need to consider:

• the application of the settlements legislation ITTOIA05/S633 and S641 (TSEM4400 ³Ù´ÇÌýTSEM4405) where the settlor may be charged to tax on income of the trust that has not already been treated as his or her income under ITTOIA05/S624 and S629;
• the application of the Transfer of Assets Abroad legislation ITA07/S727 (INTM600660) where income payable to a person abroad (which includes trustees of a non-resident trust and any non-resident company underlying a trust) may be chargeable to tax on the settlor;
• the application of the Capital Gains Tax anti-avoidance legislation TCGA92/S87 (CG38570c ) where capital gains of the non-resident trust have not been charged to Capital Gains Tax on the trustees (TSEM10265), and the same gains have not already been attributed to the settlor under TCGA92/S86, then they may be attributed to the settlor as a result of the payment of the capital sum. In this case the settlor is also considered to be a ‘beneficiaryâ€� of the trust.

A non-resident trust may give details of such capital sums on, for example, completed Tax Returns or form 50(FS) (TSEM10130).