Revenue Note for Guidance
A capital payment made to a beneficiary in a period (a resident period) of one or more years of assessment for each of which section 579A does not apply to the settlement is disregarded provided that the payment is not anticipatory of a disposal by the trustees in a succeeding period (a non-resident period) of one or more years of assessment for which section 579A does apply to the settlement. Where a resident period follows a non-resident period and all or part of the trust gains for the last year of assessment of the non-resident period have not yet been attributed and charged to beneficiaries, the outstanding trust gains are, to the extent, each year, that the beneficiaries receive capital payments, attributed and charged on them for the first year of the resident period and so on for successive years, until the outstanding gains are exhausted.
Relevant Date: Finance Act 2019