Part III Individuals, partnerships, trusts and collective investment schemes F2etc
Chapter II Settlements
Migration of settlements, non-resident settlements and dual resident settlements
87GF1Settlor liable if capital payment received by close family member
1
Subsection (2) applies if in the case of a settlement—
a
a beneficiary of the settlement receives a capital payment from the trustees in a tax year,
b
the settlor is resident in the United Kingdom at any time in that year, and
c
the beneficiary (“the original recipient”) is a close member of the settlor's family (see section 87H) at the time of receipt.
2
Sections 87 and 87A have effect as if the capital payment—
a
was received from the trustees by the settlor—
i
as a beneficiary of the settlement (whether or not the settlor is otherwise a beneficiary of the settlement), and
ii
at the time it was received by the original recipient, and
b
was not received by the original recipient.
3
Where any tax is chargeable on the settlor as a result of subsection (2) and is paid, the settlor is entitled to recover the full amount of the tax from the original recipient.
4
For the purpose of recovering that amount, the settlor is entitled to require an officer of Revenue and Customs to give the settlor a certificate specifying—
a
the amount of tax paid, and
b
the amount of the gains on which the tax is paid,
and any such certificate is conclusive evidence of the facts stated in it.
Word in Pt. 3 heading inserted (with effect in accordance with Sch. 22 para. 12 of the amending Act) by Finance Act 2009 (c. 10), Sch. 22 para. 9; S.I. 2010/670, art. 2