SCHEDULES
F1SCHEDULE 4BTransfers of value by trustees linked with trustee borrowing
Settlements within section 77, 86 or 87
3
1
This paragraph explains what is meant in this Schedule by a settlement being “within section 77, 86 or 87” in a year of assessment.
2
A settlement is “within section 77” in a year of assessment if, assuming—
a
that there were chargeable gains accruing to the trustees from the disposal of any or all of the settled property, and
b
that the condition in subsection (1)(b) of that section was met,
chargeable gains would, under that section, be treated as accruing to the settlor in that year F2(otherwise than by virtue of section 31 of the Finance Act 2005).
Expressions used in this sub-paragraph have the same meaning as in section 77.
3
A settlement is “within section 86” in a year of assessment if, assuming—
a
that there were chargeable gains accruing to the trustees by virtue of disposals of any of the settled property originating from the settlor, and
b
that the other elements of the condition in subsection (1)(e) of that section were met,
chargeable gains would, under that section, be treated as accruing to the settlor in that year.
Expressions used in this sub-paragraph have the same meaning as in section 86.
4
A settlement is “within section 87” in a year of assessment if, assuming—
a
there were trust gains for the year within the meaning of subsection (2) of that section, and
b
that beneficiaries of the settlement received capital payments from the trustees in that year or had received such payments in an earlier year,
chargeable gains would, under that section or section 89(2), be treated as accruing to the beneficiaries in that year.
Expressions used in this sub-paragraph have the same meaning as in section 87.
Sch. 4B inserted (with effect in accordance with s. 92(5) of the amending Act) by Finance Act 2000 (c. 17), s. 92(2), Sch. 25