Capital Distribution from Trust

Hi, A family member received a capital payment from a trust their Grandfather setup. No R185 is required as it was not paid from income held within the trust. Am I correct in thinking the family member must now declare this as a gain via their Self Assessment and pay 20% on the balance after deducting the £12,300 CGT allowance?

Hi rwt83,

Have a look at the guidance at TSEM3781, regarding payments from trust capital.

TSEM3781 - Trust income and gains: beneficiaries: payment from trust capital - normally capital in beneficiary’s hands

 Further help can be obtained from the trust helpline Number: 0300 123 1072, Overseas: +44 300 123 1072, Address HM Revenue & Customs Trusts BX9 1EL.

Open 9.00am to 5.00pm Monday to Friday Closed bank holidays (including Scottish bank holidays).

Trusts

Thank you.