The deadline for non-UK resident trustees to make a
"rebasing" election is 31 January 2010 where either:
- a UK resident beneficiary has received a capital payment (see
below) in 2008/09 or
- they have transferred some or all of the trust fund to another
trust in 2008/09.
A rebasing election can be made whether or not either of these
triggering events has occurred.
If the election is to be made, it has to be made by the
trustees, not the settlor or the beneficiaries, though the trustees
will no doubt wish to consult with them in advance.
Once the election has been made, it is irrevocable.
Background
Finance Act 2008 altered the treatment of gains realised in
offshore trusts with UK residents but non-domiciled settlors and
beneficiaries. Previously, capital gains made by offshore trusts
were entirely tax free, even if the gains were enjoyed in the UK as
long as the beneficiary was non-UK domiciled. Trust gains made
after 5 April 2008 are subject to the
