SCHEDULE 17 Settlements: liability of settlor
Part II Minor and consequential amendments of the Taxes Act 1988
F12
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3
In section 339(1)(a) of the Taxes Act 1988, for “section 660(3)” substitute “
section 347A(7)
”
.
4
F2(1)
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(2)
“(7)
In subsection (2)(b) above “a covenanted payment to charity” means a payment made under a covenant made otherwise than for consideration in money or money’s worth in favour of a body of persons or trust established for charitable purposes only whereby the like annual payments (of which the payment in question is one) become payable for a period which may exceed three years and is not capable of earlier termination under any power exercisable without the consent of the persons for the time being entitled to the payments.
(8)
For the purposes of subsection (7) above the bodies mentioned in section 507 shall each be treated as a body of persons established for charitable purposes only.”
F35
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F46
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7
In section 505(6) of the Taxes Act 1988, for “section 660(3)” substitute “
section 347A(7)
”
.
F58
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F69
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10
In section 678 of the Taxes Act 1988, omit subsection (7).
F711
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12
“Chapter IC Liability of trustees”.
F813
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F914
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15
Omit section 689 of the Taxes Act 1988 (recovery from trustees of discretionary trusts of higher rate tax due from beneficiaries).
F1016
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F1117
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F1218
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F1319
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20
“(3)
A person, in his capacity as trustee of a settlement, is connected with—
(a)
any individual who in relation to the settlement is a settlor,
(b)
any person who is connected with such an individual, and
(c)
any body corporate which is connected with that settlement.
In this subsection “settlement” and “settlor” have the same meaning as in Chapter IA of Part XV (see section 660G(1) and (2)).
(3A)
For the purpose of subsection (3) above a body corporate is connected with a settlement if—
(a)
it is a close company (or only not a close company because it is not resident in the United Kingdom) and the participators include the trustees of the settlement; or
(b)
it is controlled (within the meaning of section 840) by a company falling within paragraph (a) above.”.