2U.K.For paragraphs 1 and 2 (introduction and general scheme of Schedule) substitute—
1(1)This Schedule applies where the trustees of a settlement (“the transferor settlement”) make a transfer of value to which Schedule 4B applies (“the original transfer”).
(2)Where this Schedule applies, the following gains—
(a)any Schedule 4B trust gains accruing by virtue of the transfer (see paragraphs 3 to 7), and
(b)any outstanding section 87/89 gains of the transferor settlement at the end of the year of assessment in which the transfer is made (see paragraph 7A),
are pooled for the purpose of attributing them, in accordance with this Schedule, to beneficiaries who receive capital payments. Paragraph 7B provides for further gains to be brought into the pool in the case of a further transfer of value.
(3)The gains mentioned in sub-paragraph (2) are referred to in this Schedule as “Schedule 4C gains” and the pool is referred to as the transferor settlement’s “Schedule 4C pool”.
(4)Paragraphs 8 to 9 provide for the attribution of gains in a settlement’s Schedule 4C pool.
(5)References in this Schedule to a transfer to which Schedule 4B applies include any such transfer, whether or not any chargeable gain or allowable loss accrues under that Schedule by virtue of the transfer.”