Modifications etc. (not altering text)
C1 See also—1970(M) s.31(3)—appeals on application of ss.660to 685to go to Special Commissioners.1974 s.43—development gains accruing to trustees to be charged at basic plus additional rates.1988 s.339(6), (7)—treatment for corporation tax of covenanted donation to charity.1988 s.762—offshore income gains.1989 s.110—residence of trustees.
Valid from 06/04/2006
(1)If the trustees of a settlement have made a sub-fund election under paragraph 1 of Schedule 4ZA to the 1992 Act, then for the purposes of the Tax Acts, unless the context otherwise requires—
(a)the sub-fund settlement shall be treated as a settlement,
(b)the sub-fund settlement shall be treated as having been created at the time when the sub-fund election is treated as having taken effect,
(c)each trustee of the trusts on which the property comprised in the sub-fund settlement is held shall be treated as a trustee of the sub-fund settlement,
(d)a person who is a trustee of the sub-fund settlement shall be treated, from the time when the election is to be treated as having taken effect, as having ceased to be a trustee of the principal settlement unless he is also a trustee of trusts on which property comprised in the principal settlement is held,
(e)a person who is a trustee of the principal settlement shall not be treated as a trustee of the sub-fund settlement unless he is also a trustee of trusts on which property comprised in the sub-fund settlement is held, and
(f)the trustees of the sub-fund settlement shall be treated as having become absolutely entitled, at the time when the sub-fund election is treated as having taken effect, to the property comprised in that settlement as against the trustees of the principal settlement.
(2)References in subsection (1) to the time when the sub-fund election is treated as having taken effect are references to the time when the sub-fund election is treated as having taken effect under paragraph 2 of Schedule 4ZA to the 1992 Act.
(3)In this section—
“principal settlement” has the meaning given by paragraph 1 of Schedule 4ZA to the 1992 Act,
“sub-fund election” has the meaning given by paragraph 2 of that Schedule, and
“sub-fund settlement” has the meaning given by paragraph 1 of that Schedule.]
Textual Amendments
F1Ss. 685A-685G inserted (coming into force and with effect in accordance with Sch. 13 para. 1(2)-(6) of the amending Act) by Finance Act 2006 (c. 25), Sch. 13 para. 1(1)