Finance Act 2003

Method of charging gain to tax: multiple interests

8 (1) Section 547A of the Taxes Act 1988 is amended as follows.

(2) In subsection (3) (the cases where a person has a relevant interest) in paragraph (a) (which refers to trusts created by an individual) before “trusts” insert “non-charitable”.

(3) In paragraph (b) of that subsection (which refers to trusts created by a company) before “trusts” insert “non-charitable”.

(4) After paragraph (c) of that subsection (personal representatives) insert—

“(cc) in the case of trustees of a charitable trust, if a share in the rights is held by them or as security for a debt owed by them;”.

(5) In paragraph (d) of that subsection (trustees) after “trustees” insert “of a non-charitable trust”.

(6) For the word “or” at the end of sub-paragraph (i) of that paragraph substitute the following sub-paragraph—

“(ia) if a share in the rights is held by them which does not also fall within paragraph (a), (b) or (c) above or sub-paragraph (i) above; or”.

(7) In subsection (6) (rights or share held on trusts created by two or more persons) before “trusts”, where first occurring, insert “non-charitable”.

(8) In subsection (10) (case where different shares of the whole trust property originate from different persons)—

(a) in paragraph (a), before “trusts” insert “non-charitable”; and

(b) in the closing words, before “trusts” insert “non-charitable”.