SCHEDULES

SCHEDULE 22Transitional provision and consequential amendments for section 131

Consequential amendment of paragraph 9 of Schedule 5 to the 1992 Act

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(1)

In sub-paragraph (7) of paragraph 9 of Schedule 5 (persons listed for the purpose of the conditions the fulfilment of which makes a pre-19th March 1991 settlement a qualifying settlement)—

(a)

after paragraph (d) there shall be inserted the following paragraphs—

“(da)

any grandchild of a settlor or of a settlor’s spouse;

(db)

the spouse of any such grandchild;”and

(b)

in paragraph (e), for “(d)” there shall be substituted “(db)”.

(2)

For sub-paragraph (11) of that paragraph there shall be substituted the following sub-paragraph—

“(11)

In this paragraph—

“child” includes a step-child;

“grandchild” means a child of a child;

“participator” has the meaning given by section 417(1) of the Taxes Act.”

(3)

Sub-paragraph (1) above shall be disregarded for the purpose of determining whether either of the conditions set out in sub-paragraphs (5) and (6) of that paragraph became fulfilled at any time before 17th March 1998.