Textual Amendments
F1Words in Sch. 1 heading inserted (with application in accordance with Sch. 28 para. 7 of the amending Act) by Finance Act 2003 (c. 14), Sch. 28 para. 2(1)
2(1)For any year of assessment during the whole or part of which any property is settled property, not being a year of assessment for which paragraph 1(1) above applies, [F2sections 3(1) to (5C) and 3A] shall apply to the trustees of a settlement as they apply to an individual but with the following modifications.U.K.
(2)In [F3section 3(1), (5A), (5B) and (5C)] [F4and section 3A(1)(a)] for “the exempt amount for the year" there shall be substituted “ one-half of the exempt amount for the year ”.
[F5(2A)As they apply by virtue of sub-paragraph (1) above—
(a)section 3(5A) has effect with the omission of paragraph (b), and
(b)section 3(5B) has effect with the omission of the words “or (b)”.]
F6(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)In relation to a settlement which is one of 2 or more qualifying settlements comprised in a group, sub-paragraph (2) above shall have effect as if for the reference to one-half of the exempt amount for the year there were substituted a reference to one-tenth of that exempt amount or, if it is more, to such amount as results from dividing one-half of the exempt amount for the year by the number of settlements in the group.
(5)For the purposes of sub-paragraph (4) above—
(a)a qualifying settlement is any settlement (other than an excluded settlement) which is made after 6th June 1978 and to the trustees of which this paragraph applies for the year of assessment; and
(b)all qualifying settlements in relation to which the same person is the settlor constitute a group.
(6)If, in consequence of 2 or more persons being settlors in relation to it, a settlement is comprised in 2 or more groups comprising different numbers of settlements, sub-paragraph (4) above shall apply to it as if the number by which one-half of the exempt amount for the year is to be divided were the number of settlements in the largest group.
[F7(6A)In its application to the trustees of a settlement, section 3A(1) has effect with the substitution for the reference to section 8 of the Management Act of a reference to section 8A of that Act.]
(7)In this paragraph F8... “excluded settlement” means—
(a)any settlement the trustees of which are not for the whole or any part of the year of assessment F9... resident and ordinarily resident in the United Kingdom; and
(b)any settlement the property comprised in which—
(i)is held for charitable purposes only and cannot become applicable for other purposes; or
(ii)is held for the purposes of [F10a registered pension scheme, a superannuation fund to which section 615(3) of the Taxes Act applies or an occupational pension scheme (within the meaning of section 150(5) of the Finance Act 2004) that is not a registered pension scheme].
F11(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9)[F12An officer of the Board] may by notice require any person, being a party to a settlement, to furnish him within such time as he may direct (not being less than 28 days) with such particulars as he thinks necessary for the purposes of this paragraph.
Textual Amendments
F2Words in Sch. 1 para. 2(1) substituted (with application in accordance with Sch. 28 para. 7 of the amending Act) by Finance Act 2003 (c. 14), Sch. 28 para. 5(2)
F3Words in Sch. 1 para. 2(2) substituted (retrospectively) by Finance Act 2003 (c. 14), Sch. 28 paras. 5(3)(a), 8
F4Words in Sch. 1 para. 2(2) inserted (with application in accordance with Sch. 28 para. 7 of the amending Act) by Finance Act 2003 (c. 14), Sch. 28 para. 5(3)(b)
F5Sch. 1 para. 2(2A) inserted (retrospectively) by Finance Act 2003 (c. 14), Sch. 28 paras. 5(4), 8
F6Sch. 1 para. 2(3) repealed (with application in accordance with Sch. 28 para. 7 of the amending Act) by Finance Act 2003 (c. 14), Sch. 28 para. 5(5), Sch. 43 Pt. 3(7)
F7Sch. 1 para. 2(6A) inserted (with application in accordance with Sch. 28 para. 7 of the amending Act) by Finance Act 2003 (c. 14), Sch. 28 para. 2(3)
F8Words in Sch. 1 para. 2(7) repealed (with effect in accordance with Sch. 12 para. 28(3) of the amending Act) by Finance Act 2006 (c. 25), Sch. 12 para. 28(2), Sch. 26 Pt. 3(15)
F9Words in Sch. 1 para. 2(7)(a) repealed (6.4.2007) by Finance Act 2006 (c. 25), Sch. 12 paras. 38, 41, Sch. 26 Pt. 3(15)
F10Words in Sch. 1 para. 2(7)(b)(ii) substituted (6.4.2006) by Finance Act 2004 (c. 12), s. 284(1), Sch. 35 para. 42(2) (with Sch. 36)
F11Sch. 1 para. 2(8) repealed (6.4.2006) by Finance Act 2004 (c. 12), s. 284(1), Sch. 35 para. 42(3), Sch. 42 Pt. 3 (with Sch. 36)
F12Words in Sch. 1 para. 2(9) substituted (with effect in accordance with Sch. 28 para. 9 of the amending Act) by Finance Act 2003 (c. 14), Sch. 28 para. 5(6)