668Application of Chapter II to settlements by two or more settlors
(1)In the case of any settlement where there is more than one settlor, this Chapter shall, subject to the provisions of this section, have effect in relation to each settlor as if he were the only settlor.
(2)In the case of any such settlement, only the following can, for the purposes of this Chapter, be taken into account, in relation to any settlor, as income paid by virtue or in consequence of the settlement to or for the benefit of a child of the settlor, that is to say—
(a)income originating from that settlor; and
(b)in a case in which section 664(2)(b) applies, any sums which are under that paragraph to be deemed to be paid as income.
(3)In applying section 664(2)(b) to any settlor—
(a)the references to sums paid by virtue or in consequence of the settlement or any enactment relating thereto include only sums paid out of property originating from that settlor or income originating from that settlor; and
(b)the reference to income which by virtue or in consequence of the settlement has been paid to or for the benefit of a child of the settlor or dealt with as mentioned in section 664(1) includes only income originating from that settlor.
(4)References in this section to property originating from a settlor are references to—
(a)property which that settlor has provided directly or indirectly for the purposes of the settlement; and
(b)property representing that property; and
(c)so much of any property which represents both property provided as mentioned in paragraph (a) above and other property as, on a just apportionment, represents the property so provided.
(5)References in this section to income originating from a settlor are references to—
(a)income from property originating from that settlor; and
(b)income provided directly or indirectly by that settlor.
(6)In subsections (4) and (5) above—
(a)references to property or income which a settlor has provided directly or indirectly include references to property or income which has been provided directly or indirectly by another person in pursuance of reciprocal arrangements with that settlor but do not include references to property or income which that settlor has provided directly or indirectly in pursuance of reciprocal arrangements with another person; and
(b)references to property which represents other property include references to property which represents accumulated income from that other property.