SCHEDULES
SCHEDULE 7 Relief for gifts of business assets
Part I Agricultural property and settled property
Settled property
2
1
If—
a
the trustees of a settlement make a disposal otherwise than under a bargain at arm’s length of an asset within sub-paragraph (2) below, and
b
a claim for relief under section 165 is made by the trustees and the person who acquires the asset (“the transferee”) or, where the trustees of a settlement are also the transferee, by the trustees making the disposal alone,
then, subject to sections 165(3), 166, 167 and 169, section 165(4) shall apply in relation to the disposal.
2
An asset is within this sub-paragraph if—
a
it is, or is an interest in, an asset used for the purposes of a trade, profession or vocation carried on by—
i
the trustees making the disposal, or
ii
a beneficiary who had an interest in possession in the settled property immediately before the disposal, or
b
it consists of shares or securities of a trading company, or of the holding company of a trading group, where—
i
the shares or securities are neither quoted on a recognised stock exchange nor dealt in on the Unlisted Securities Market, or
ii
not less than 25 per cent. of the voting rights exercisable by shareholders of the company in general meeting are exercisable by the trustees at the time of the disposal.
3
Where section 165(4) applies by virtue of this paragraph, references to the trustees shall be substituted for the references in section 165(4)(a) to the transferor; and where it applies in relation to a disposal which is deemed to occur by virtue of section 71(1) or 72(1) section 165(7) shall not apply.