Textual Amendments
F1Sch. 5B inserted (with effect in accordance with Sch. 13 para. 4(4) of the amending Act) by Finance Act 1995 (c. 4), Sch. 13 para. 4(3)
Textual Amendments
F2Sch. 5B paras. 16-19 and cross-headings inserted (with effect in accordance with s. 74(3) of the amending Act) by Finance Act 1998 (c. 36), Sch. 13 para. 36
17(1)Subject to the following provisions of this paragraph, this Schedule shall apply as if—U.K.
(a)any reference to an individual included a reference to the trustees of a settlement, and
(b)in relation to any such trustees, the reference in paragraph 1(1) above to any asset were a reference to any asset comprised in any settled property to which this paragraph applies (a “trust asset").
(2)This paragraph applies—
(a)to any settled property in which the interests of the beneficiaries are not interests in possession, if all the beneficiaries are individuals, and
(b)to any settled property in which the interests of the beneficiaries are interests in possession, if any of the beneficiaries are individuals.
(3)If, at the time of the disposal of the trust asset in a case where this Schedule applies by virtue of this paragraph—
(a)the settled property comprising that asset is property to which this paragraph applies by virtue of sub-paragraph (2)(b) above, but
(b)not all the beneficiaries are individuals,
only the relevant proportion of the gain which would accrue to the trustees on the disposal shall be taken into account for the purposes of this Schedule as it so applies.
(4)This Schedule shall not apply by virtue of this paragraph in a case where, at the time of the disposal of the trust asset, the settled property which comprises that asset is property to which this paragraph applies by virtue of sub-paragraph (2)(a) above unless, immediately after the acquisition of the relevant shares, the settled property comprising the shares is also property to which this paragraph applies by virtue of sub-paragraph (2)(a) above.
(5)This Schedule shall not apply by virtue of this paragraph in a case where, at the time of the disposal of the trust asset, the settled property which comprises that asset is property to which this paragraph applies by virtue of sub-paragraph (2)(b) above unless, immediately after the acquisition of the relevant shares—
(a)the settled property comprising the shares is also property to which this paragraph applies by virtue of sub-paragraph (2)(b) above, and
(b)if not all the beneficiaries are individuals, the relevant proportion is not less than the proportion which was the relevant proportion at the time of the disposal of the trust asset.
(6)If, at any time, in the case of settled property to which this paragraph applies by virtue of sub-paragraph (2)(b) above, both individuals and others have interests in possession, “the relevant proportion" at that time is the proportion which the amount specified in paragraph (a) below bears to the amount specified in paragraph (b) below, that is—
(a)the total amount of the income of the settled property, being income the interests in which are held by beneficiaries who are individuals, and
(b)the total amount of all the income of the settled property.
(7)Where, in the case of any settled property in which any beneficiary holds an interest in possession, one or more beneficiaries (“the relevant beneficiaries") hold interests not in possession, this paragraph shall apply as if—
(a)the interests of the relevant beneficiaries were a single interest in possession, and
(b)that interest were held, where all the relevant beneficiaries are individuals, by an individual and, in any other case, by a person who is not an individual.
(8)In this paragraph references to interests in possession do not include interests for a fixed term and, except in sub-paragraph (1), references to individuals include any charity.]]