Modifications etc. (not altering text)
C1Pt. II Chapter III applied (1.5.1995 with application as mentioned in s. 127(19) of the amending Act) by 1995 c. 4, s. 127(16)(a)(19)
C2Pt. II Chapter III modified (1.12.1997 with effect with respect to accounting periods of Lloyd's Scottish limited partnerships ending on or after that date) by S.I. 1997/2681, reg. 3(1)(a)
(1)A member shall be treated for the purposes of the Income Tax Acts and the Gains Tax Acts as absolutely entitled as against the trustees to the assets forming part of an ancillary trust fund of his.
(2)The cost of acquisition and the consideration for the disposal of assets forming part of an ancillary trust fund—
(a)shall be left out of account in computing for the purposes of income tax the profits or losses of the member’s underwriting business; and
(b)accordingly, shall not be excluded for the purposes of capital gains tax under section 37 or 39 of the Gains Tax Act.
(3)None of the following provisions (which apply where an individual entitled to securities dies), namely—
[F1(a)section 636 of ITA 2007 (exception where there is a transfer to a legatee);]
F2(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
shall apply where the individual concerned is a member and the security concerned forms part of an ancillary trust fund of his.
(4)In a case where subsection (3)(a) above applies, the deceased’s personal representatives shall be treated for the purposes of [F3Part 12 of ITA 2007 and section] 728 of the Taxes Act 1988 as the transferor or transferee in relation to transfers of securities as to which the deceased was the transferor or transferee (as the case may be) in the interest period in which he died.
Textual Amendments
F1S. 176(3)(a) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 357(2) (with Sch. 2)
F2S. 176(3)(b)-(d) repealed (29.4.1996 with effect in accordance with the provisions of Chapter II of Pt. IV of the amending Act) by 1996 c. 8, s. 205, Sch. 41 Pt. V(3)
F3Words in s. 176(4) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 357(3) (with Sch. 2)
Modifications etc. (not altering text)
C3S. 176 modified (1.12.1997 with effect with respect to accounting periods of Lloyd's Scottish limited partnerships ending on or after that date) by S.I. 1997/2681, reg. 5(1)