Income Tax Act 2007 (c. 3)

Part 9 U.K. Special rules about settlements and trustees

Chapter 2 U.K. General provision about settlements and trustees

Modifications etc. (not altering text)

C1 Pt. 9 Ch. 2 applied (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 1169(1), 1184(1) (with Sch. 2)

Trustees U.K.

476 How to work out whether settlor meets condition C U.K.

(1) This section applies for the purpose of working out whether a settlor (“S”) in relation to a settlement meets condition C at a time.

(2) If—

(a) the settlement arose on S's death (whether by S's will, on S's intestacy or in any other way), and

(b) immediately before S's death, S was UK resident F1 ... or domiciled in the United Kingdom,

then S meets condition C from the time of S's death until S ceases to be a settlor in relation to the settlement.

(3) If—

(a) the settlement is not within subsection (2)(a), and

(b) at a time when S made the settlement (or is treated for the purposes of the Income Tax Acts as making the settlement), S was UK resident F2 ... or domiciled in the United Kingdom,

then S meets condition C from that time until S ceases to be a settlor in relation to the settlement.

[F3 (3A) Section 835BA (deemed domicile) applies for the purposes of subsections (2)(b) and (3)(b).]

(4) Further, if—

(a) there is a transfer of property in relation to which section 471 applies,

(b) S is a settlor in relation to settlement 2 as a result of that section, and

(c) immediately before the disposal by the trustees of settlement 1, S meets condition C as a settlor in relation to settlement 1 as a result of subsection (2) or (3) or this subsection,

then S meets condition C as a settlor in relation to settlement 2 from the time S becomes such a settlor until S ceases to be such a settlor.

(5) “Settlement 1” and “settlement 2” are to be read in accordance with section 470(1).

Textual Amendments

F1 Words in s. 476(2)(b) omitted (with effect in accordance with Sch. 46 para. 72 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 46 para. 57(2) (with Sch. 46 para. 57(4))

F2 Words in s. 476(3)(b) omitted (with effect in accordance with Sch. 46 para. 72 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 46 para. 57(3) (with Sch. 46 para. 57(5))

F3 S. 476(3A) inserted (with effect in accordance with Sch. 8 para. 12(2) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 8 para. 12(1)