Taxation of Chargeable Gains Act 1992, section 60

Nominees and bare trustees

Part III Individuals, partnerships, trusts and collective investment schemes etc

(1)In relation to [F223propertyF223] held by a person as nominee for another person, or as trustee for another person absolutely entitled as against the trustee, or for any person who would be so entitled but for being an infant or other person under disability (or for 2 or more persons who are or would be jointly so entitled), this Act shall apply as if the property were vested in, and the acts of the nominee or trustee in relation to the [F223propertyF223] were the acts of, the person or persons for whom he is the nominee or trustee (acquisitions from or disposals to him by that person or persons being disregarded accordingly).

(2)It is hereby declared that references in this Act to any [F224propertyF224] held by a person as trustee for another person absolutely entitled as against the trustee are references to a case where that other person has the exclusive right, subject only to satisfying any outstanding charge, lien or other right of the trustees to resort to the [F224propertyF224] for payment of duty, taxes, costs or other outgoings, to direct how that [F224propertyF224] shall be dealt with.

Definitions used in section 60 3

property

(6) Sub-paragraphs (4) and (5) above apply for the purposes of paragraph (b) of sub-paragraph (1) above as they apply for the purposes of paragraph (a), reading “income” for “property".

Defined in Sch.5 para.2(6) · see it in the full Act

(a) the reference to “assets” were a reference to “property”, and

Defined in Sch.4ZA para.22(2) · see it in the full Act
trustee

(7A) In this section, sections 86A to 96 and Schedule 4C “trustee”, in relation to a settlement in relation to which there would be no trustees apart from this subsection, means any person in whom the settled property or its management is for the time being vested (and a person who is treated as a trustee of the settlement by virtue of this subsection shall be treated as a trustee of the settlement for the purposes of section 69).

Defined in s.97(7A) · see it in the full Act

(b) “trustee”, in relation to a settlement in relation to which there would be no trustees apart from this paragraph, means any person in whom the settled property or its management is for the time being vested.

Defined in s.286(3ZA) · see it in the full Act
tax

and for the purposes of this definition “tax” means capital gains tax, corporation tax or income tax.

Defined in s.16A(2) · see it in the full Act

Cases considering section 60 10

Patricia Ann Keegan v Terence John Keegan & Anor

[2025] EWHC 148 (Ch) · 28 January 2025

Section 60 was relied on as the statutory basis for the conclusion that the personal representatives were liable to capital gains tax on the disposal made during administration. (see paras [80]-[82])

Assets Recovery Agency v Szepietowski & Ors

[2009] EWHC 655 (Ch) · 19 March 2009Defines

Section 60 was used to explain that, on normal capital gains tax principles, a disposal by a nominee or bare trustee is treated as a disposal by the beneficial owner. That possible tax motivation did not assist the proposed construction of the Settlement Deed. (see para [34])

Underwood v Revenue and Customs

[2008] EWHC 108 (Ch) · 31 January 2008

Applies the provision as directing attention away from bare legal title and towards beneficial ownership when identifying a disposal. No beneficial interest passed because neither contract was performed (see para [16]; [40]).

What each judgment says about section 60 is in the case-law panel in the full Act.

Amendments and notes

4 notes from legislation.gov.uk

Amendments

  1. F223Word in s. 60(1) substituted (with effect in accordance with Sch. 12 para. 10(3) of the amending Act) by Finance Act 2006 (c. 25), Sch. 12 para. 10(1)
  2. F224Word in s. 60(2) substituted (with effect in accordance with Sch. 12 para. 10(3) of the amending Act) by Finance Act 2006 (c. 25), Sch. 12 para. 10(2)

Modifications

  1. C139S. 60 applied (with application in accordance with s. 58(4) of the amending Act) by Finance Act 2013 (c. 29), s. 59(8)
  2. C140S. 60(1) applied (27.7.1993) by 1993 c. 37, s. 12, Sch. 2 Pt. I para. 21(2)(d)