SCHEDULES

SCHEDULE 7Remittance basis

Part 2Non-resident companies and trusts etc

Attribution of gains to beneficiaries

112

1

Section 91 (increase in tax payable under section 87 or 89(2)) is amended as follows.

2

For subsection (1) substitute—

1

This section applies if—

a

chargeable gains are treated under section 87 or 89(2) as accruing to a beneficiary by virtue of the matching (under section 87A) of all or part of a capital payment with the section 2(2) amount for a tax year (“the relevant tax year”),

b

the beneficiary is charged to tax by virtue of that matching, and

c

the capital payment was made more than one year after the end of the relevant tax year.

1A

Where part of a capital payment is matched, references in subsections (2) and (3) to the capital payment are to the part matched.

3

In subsection (5)(a), for the words from “year” to the end (excluding the “and”) substitute “ tax year immediately after the relevant tax year, ”.

4

Omit subsection (8).