5 Accumulation and discretionary settlements.U.K.
(1)The rate of capital gains tax in respect of gains accruing to trustees of an accumulation or discretionary settlement in a year of assessment shall be equivalent to [F1the rate which for that year is applicable to trusts under section 686(1) of the Taxes Act.]
(2)For the purposes of subsection (1) above a trust is an accumulation or discretionary settlement where—
(a)all or any part of the income arising to the trustees in the year of assessment is income to which section 686 of the Taxes Act F2. . . applies, or
(b)all the income arising to the trustees in the year of assessment is treated as the income of the settlor, but that section would apply to it if it were not so treated, or
F3(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d)no income arises to the trustees in the year of assessment, but that section would apply if there were income arising to the trustees and none of it were treated as the income of the settlor F4... .
Textual Amendments
F1Words in s. 5(1) substituted (27.7.1993 with effect for the year 1993-94 and subsequent years of assessment as mentioned in Sch. 6 para. 25(1)) by 1993 c. 34, s. 79, Sch. 6 paras.23, 25(1)
F2Words in s. 5(2)(a) repealed (27.7.1993 with effect for the year 1993-94 and subsequent years of assessment as mentioned in Sch. 23 Pt. III) by 1993 c. 34, s. 213, Sch. 23 Pt. III Table(6)
F3S. 5(2)(c) repealed (with effect in accordance with Sch. 7 para. 12(4) of the amending Act) by Finance Act 1997 (c. 16), Sch. 18 Pt. VI(7)
F4Words in s. 5(2)(d) repealed (with effect in accordance with Sch. 7 para. 12(4) of the amending Act) by Finance Act 1997 (c. 16), Sch. 18 Pt. VI(7)