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TCGA92/S96(1)

If a capital payment is received from a close company or a non-resident close company controlled by the trustees it is treated as if it were received from the trustees. This prevents the trustees avoiding the application of TCGA/S87 by routing the payment through a company they control allowing the beneficiary to argue that the payment is not received from the trustees.

»Ê¹ÚÌåÓýapp normal definitions of close company and control apply subject to the modifications in TCGA92/S96(10). Close company is a term that applies only to UK resident companies. For the sake of convenience the guidance on TCGA/S87 uses the term non-resident close company to mean a company that would be close if was resident in the UK.

See CG38690 for guidance on the meaning of control.