Part V Transfer of business assets
Chapter II Gifts of business assets
169FF1Meaning of “interest in a settlement” in sections 169B to 169D
1
For the purposes of this section and sections 169B to 169D, an individual is to be regarded as having an interest in a settlement if subsection (2) or (3) below applies.
2
This subsection applies if—
a
any property which may at any time be comprised in the settlement, or
b
any derived property,
is, or will or may become, payable to or applicable for the benefit of the individual or his spouse in any circumstances whatsoever.
3
This subsection applies if the individual or his spouse enjoys a benefit deriving directly or indirectly from—
a
any property which is comprised in the settlement, or
b
any derived property.
4
The references in subsections (2) and (3) above to the spouse of the individual do not include—
a
a spouse from whom the individual is separated—
i
under an order of a court,
ii
under a separation agreement, or
iii
in such circumstances that the separation is likely to be permanent, or
b
the widow or widower of the individual.
5
An individual is not to be regarded as having an interest in a settlement by virtue of subsection (2) above if and so long as none of the property which may at any time be comprised in the settlement, and no derived property, can become payable or applicable as mentioned in that provision except in the event of—
a
in the case of a marriage settlement, the death of both parties to the marriage and of all or any of the children of the marriage, or
b
the death of a child of the individual where the child had become beneficially entitled to the property or any derived property at an age not exceeding 25.
6
In this section “derived property”, in relation to any property, means—
a
income from that property,
b
property directly or indirectly representing—
i
proceeds of that property, or
ii
proceeds of income from that property, or
c
income from property which is derived property by virtue of paragraph (b) above.