Textual Amendments
F1Sch. 4B inserted (with effect in accordance with s. 92(5) of the amending Act) by Finance Act 2000 (c. 17), s. 92(2), Sch. 25
2(1)For the purposes of this Schedule trustees of a settlement make a transfer of value if they—U.K.
(a)lend money or any other asset to any person,
(b)transfer an asset to any person and receive either no consideration or a consideration whose amount or value is less than the market value of the asset transferred, or
(c)issue a security of any description to any person and receive either no consideration or a consideration whose amount or value is less than the value of the security.
(2)References in this Schedule to “the material time”, in relation to a transfer of value, are to the time when the loan is made, the transfer is effectively completed or the security is issued.
The effective completion of a transfer means the point at which the person acquiring the asset becomes for practical purposes unconditionally entitled to the whole of the intended subject matter of the transfer.
(3)In the case of a loan, the amount of value transferred is taken to be the market value of the asset.
(4)In the case of a transfer, the amount of value transferred is taken to be—
(a)if any part of the value of the asset is attributable to trustee borrowing, the market value of the asset;
(b)if no part of the value of the asset is attributable to trustee borrowing, the market value of the asset reduced by the amount or value of any consideration received for it.
Paragraph 12 below explains what is meant by the value of an asset being attributable to trustee borrowing.
(5)In the case of the issue of a security, the amount of value transferred shall be taken to be the value of the security reduced by the amount or value of any consideration received by the trustees for it.
(6)References in this paragraph to the value of an asset are to its value immediately before the material time, unless the asset does not exist before that time in which case its value immediately after that time shall be taken.]