Part III Individuals, partnerships, trusts and collective investment schemes F3etc
Chapter II Settlements
Migration of settlements, non-resident settlements and dual resident settlements
C1C2C389 Migrant settlements etc.
1
Where a period of one or more years of assessment for which section 87 applies to a settlement (“a non-resident period”) succeeds a period of one or more years of assessment for each of which section 87 does not apply to the settlement (“a resident period”), a capital payment received by a beneficiary in the resident period shall be disregarded for the purposes of F1sections 87 and 87A if it was not made in anticipation of a disposal made by the trustees in the non-resident period.
F21A
Subsection (2) applies to a settlement if—
a
a non-resident period is succeeded by a resident period, and
b
in relation to the last tax year in the non-resident period (“the last non-resident tax year”), section 87A(3) applied by virtue of paragraph (a) of that provision (exhaustion of capital payments).
2
Chargeable gains are treated as accruing in a tax year (in the resident period) to a beneficiary of the settlement who receives a capital payment from the trustees in that year if all or part of the capital payment is matched (under section 87A as it applies for that year) with the section 2(2) amount for the last non-resident tax year or any earlier tax year.
3
Section 87(3) and (4) and sections 87A to F487P apply for the purposes of subsection (2) as if the relevant tax year were the tax year mentioned in subsection (2).
4
Section 87B (remittance basis) applies in relation to chargeable gains treated under subsection (2) as accruing as it applies in relation to chargeable gains treated under section 87 as accruing.
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