SCHEDULES

C3C2C1F6SCHEDULE 4CTransfers of value: attribution of gains to beneficiaries

Annotations:
Amendments (Textual)
F6

Sch. 4C inserted (with effect in accordance with s. 92(5) of the amending Act) by Finance Act 2000 (c. 17), s. 92(4), Sch. 26 Pt. I

Modifications etc. (not altering text)
C3

Sch. 4C modified (21.7.2008) by Finance Act 2008 (c. 9), Sch. 7 paras. 152-155

C2

Sch. 4C applied (with modifications) by Income and Corporation Taxes Act 1988 (c. 1), s. 762(3) (as substituted (with effect in accordance with Sch. 7 para. 98 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 93(3))

C1

Sch. 4C applied (with modifications) (with effect in accordance with art. 1(2)(3), Sch. 1 of the affecting S.I.) by The Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), regs. 1(1), 20(3)

F9Outstanding F4section 1(3) amounts

Annotations:
Amendments (Textual)
F9

Sch. 4C para. 1A and cross-heading inserted (with effect in accordance with Sch. 7 para. 147 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 133 (with Sch. 7 para. 155)

1A

1

The following steps are to be taken for the purpose of calculating F5the section 1(3) amounts for a settlement that are outstanding at the end of a tax year (“the relevant tax year”).

  • Step 1

    Find F5the section 1(3) amount for the settlement for the relevant tax year and earlier tax years, as reduced under section 87A as it applies for the relevant tax year and earlier tax years.

  • Step 2

    This Step applies if, F7directly or indirectly by virtue of the matching of F5the section 1(3) amount for the settlement for a tax year (“the applicable year”) with a capital payment, chargeable gains are treated under section 87F2, 87K, 87L or 89(2) as accruing in the relevant tax year to F11an individual who is not chargeable to tax for that year.

    Increase F5the section 1(3) amount for the applicable year (found under Step 1) by the amount of the chargeable gains.

2

For the purposes of Step 1 of sub-paragraph (1) take into account the effect of section 90 in relation to any transfer of settled property from or to the trustees of the settlement made in or before the relevant tax year.

3

For the purposes of this Schedule F10an individual is “chargeable to tax” for a tax year ifF1, as respects that year, F8the individualF3is UK resident for the tax year (as determined in accordance with Chapter 1 of Part 1 of this Act).