Section 87G — Taxation of Chargeable Gains Act 1992: Settlor liable if capital payment received by close family member

Settlor liable if capital payment received by close family member 87G 1 Subsection (2) applies if in the case of a settlement—

a a beneficiary of the settlement receives a capital payment from the trustees in a tax year, b the settlor is resident in the United Kingdom for that tax year , and c the beneficiary (“the original recipient”) is a close member of the settlor's family (see section 87H) at the time of receipt.

2 Sections 87 and 87A have effect as if the capital payment—

a was received from the trustees by the settlor—

i as a beneficiary of the settlement (whether or not the settlor is otherwise a beneficiary of the settlement),

and ii at the time it was received by the original recipient, and b was not received by the original recipient. 2A But subsection (2) does not apply if—

a the original recipient is resident in the United Kingdom for the tax year in which they receive the capital payment, and b the settlor is a qualifying new resident for that tax year.

3 Where any tax is chargeable on the settlor as a result of subsection (2) and is paid, the settlor is entitled to recover the full amount of the tax from the original recipient.

4 For the purpose of recovering that amount, the settlor is entitled to require an officer of Revenue and Customs to give the settlor a certificate specifying—

a the amount of tax paid, ... b the amount of the gains on which the tax is paid, and c the tax year in which those gains were treated as arising, and any such certificate is conclusive evidence of the facts stated in it.