I have a client whom I act for in a personal capacity, who left the UK during 2017/18 and will be non UK resident from 31 May 2017. He is also the Trustee of a Trust. The Trust was settled by a non UK domiciled settlor who was also (and remains) non UK resident at the time of the settlement. The Trust was UK resident under s475 ITA2007, as both of the Trustees were UK resident.
Pre FA2013 my understanding was the Residence position of Trustees directly followed the individual trustees, and, therefore, should my Trustee (in the above example) have become non resident, the Trust would have become non resident on the same date.
Following FA2013, Sch39 s41(b) states that 'this part (split year treatment) applies to only a limited extent in determining the residence status of the Trustees of a settlement. It doesn’t appear that s475 ITA2007 gives any provision for splitting the tax year of the Trustees? Does anyone agree? Would the Trust be UK resident for the full tax year of 2017/18?
Would it then follow that the CGT exit charge under s80 TCGA would take place based on the market values of the Trusts assets on 5th April 2018?