»Ê¹ÚÌåÓýapp

In addition to more general reforms relating to the valuation of certain benefits from 6/4/2017 (see CG38625P), from 6/4/2018 significant changes were made to determine the capital payments that would be taken into account for the purposes of matching to the trustees s2(2)* amounts. »Ê¹ÚÌåÓýapp changes can affect who is regarded as receiving the capital payment in certain circumstances.

»Ê¹ÚÌåÓýappse rules do not alter any allocation of capital payments made or any matching to the trustees section 2(2)* amount for the years to 2017/18 but from 2018/19 may mean that a capital payment made may be disregarded for 2018/19 or a later year.

»Ê¹ÚÌåÓýapp order of priority for matching capital payments did not change and the position remains as detailed at CG38700.

In broad terms the new rules operate to:

Disregard capital payments made to non-residents � see CG38703.

Disregard capital payments that have been made to a migrating beneficiary � see CG38706.

»Ê¹ÚÌåÓýappse rules are subject to specific provisions where:

»Ê¹ÚÌåÓýapp capital payments were made during a period of temporary non-residence - see CG38708.

»Ê¹ÚÌåÓýapp capital payments were made to a close family member of the settlor of the non-resident trust â€� see CG38711.

»Ê¹ÚÌåÓýapp capital payments are received by a recipient and subsequently paid onto another person â€� see CG38712.

As a general principle the rules do not look to alter computations that may have been necessary for any earlier years.

CG38716 gives guidance on the interaction of the rules and practical considerations.

*This section was re-written for disposals from 6 April 2019 to section 1(3) see CG10150.