Taxes Consolidation Act 1997 section 569

Assets of insolvent person

Section 569 sets out the capital gains tax treatment of assets held by a trustee or assignee in bankruptcy, under a deed of arrangement, or by a personal insolvency practitioner under a Debt Settlement Arrangement or Personal Insolvency Arrangement.

• The transfer of assets from a bankrupt, debtor or insolvent person to a trustee, assignee in bankruptcy or personal insolvency practitioner, and any retransfer back, are disregarded for CGT purposes.
• Any chargeable gains arising on disposals by the trustee, assignee or personal insolvency practitioner are assessed on and recoverable from that trustee, assignee or practitioner.
• Where the bankrupt, debtor or insolvent person dies, the trustee, assignee or personal insolvency practitioner is treated as a personal representative of the deceased, and the nominee treatment ceases to apply.
• Assets vesting in a trustee in bankruptcy or personal insolvency practitioner after the death of the bankrupt, debtor or insolvent person are likewise treated as held by a personal representative of the deceased.