SCHEDULES
F1SCHEDULE 4ADisposal of interest in settled property: deemed disposal of underlying assets
Deemed disposal of underlying assets
4
1
Where this Schedule applies and the following conditions are met—
a
the condition as to UK residence of the trustees (see paragraph 5),
b
the condition as to UK residence of the settlor (see paragraph 6), and
c
the condition as to settlor interest in the settlement (see paragraph 7),
the trustees of the settlement are treated for all purposes of this Act as disposing of and immediately reacquiring the relevant underlying assets.
This is referred to below in this Schedule as the “deemed disposal”.
2
In paragraphs 5, 6 and 7 “the relevant year of assessment” means the year of assessment in which the disposal of the interest in settled property is made.
3
The deemed disposal is treated as taking place when the disposal of the interest in settled property is made.
This is subject to paragraph 13(3)(a) where the beginning of the disposal and its effective completion fall in different years of assessment.
Sch. 4A inserted (with application in accordance with s. 91(3) of the amending Act) by Finance Act 2000 (c. 17), s. 91(2), Sch. 24