[F1[F21A(1)The following steps are to be taken for the purpose of calculating [F3the section 1(3) amounts] for a settlement that are outstanding at the end of a tax year (“the relevant tax year”).U.K.
Step 1
Find [F3the section 1(3) amount] for the settlement for the relevant tax year and earlier tax years, as reduced under section 87A as it applies for the relevant tax year and earlier tax years.
Step 2
This Step applies if, [F4directly or indirectly] by virtue of the matching of [F3the section 1(3) amount] for the settlement for a tax year (“the applicable year”) with a capital payment, chargeable gains are treated under section 87[F5, 87K, 87L] or 89(2) as accruing in the relevant tax year to [F6an individual] who is not chargeable to tax for that year.
Increase [F3the section 1(3) amount] for the applicable year (found under Step 1) by the amount of the chargeable gains.
(2)For the purposes of Step 1 of sub-paragraph (1) take into account the effect of section 90 in relation to any transfer of settled property from or to the trustees of the settlement made in or before the relevant tax year.
(3)For the purposes of this Schedule [F7an individual] is “chargeable to tax” for a tax year if[F8, as respects that year, [F9the individual] [F10is UK resident for the tax year (as determined in accordance with Chapter 1 of Part 1 of this Act)]].]]
Textual Amendments
F1Sch. 4C inserted (with effect in accordance with s. 92(5) of the amending Act) by Finance Act 2000 (c. 17), s. 92(4), Sch. 26 Pt. I
F2Sch. 4C para. 1A and cross-heading inserted (with effect in accordance with Sch. 7 para. 147 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 133 (with Sch. 7 para. 155)
F3Words in Sch. 4C substituted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 89(2)
F4Words in Sch. 4C para. 1A(1) inserted (15.3.2018) by Finance Act 2018 (c. 3), Sch. 10 para. 1(9)(a)(i)
F5Words in Sch. 4C para. 1A(1) inserted (15.3.2018) by Finance Act 2018 (c. 3), Sch. 10 para. 1(9)(a)(ii)
F6Words in Sch. 4C para. 1A(1) substituted (15.3.2018) by Finance Act 2018 (c. 3), Sch. 10 para. 1(9)(a)(iii)
F7Words in Sch. 4C para. 1A(3) substituted (15.3.2018) by Finance Act 2018 (c. 3), Sch. 10 para. 1(9)(b)(i)
F8Words in Sch. 4C para. 1A(3) substituted (with effect in accordance with Sch. 46 para. 112 of the amending Act) by Finance Act 2013 (c. 29), Sch. 46 para. 107(2)
F9Words in Sch. 4C para. 1A(3) substituted (15.3.2018) by Finance Act 2018 (c. 3), Sch. 10 para. 1(9)(b)(ii)
F10Words in Sch. 4C para. 1A(3) substituted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 89(3)