TSEM6280 - Legal background to trusts and estates: trustees in bankruptcy

Trustees administer and distribute a bankrupt’s assets for the benefit of the bankrupt’s creditors. Their primary duty is to the creditors. They settle the creditors� claims, then pass any surplus assets to the bankrupt.

HMRC will not regard the trustee in bankrupcy as a trustee of a settlement for income tax purposes, or for capital gains tax purposes (CG20500).