Part III Income Tax, Corporation Tax and Capital Gains Tax
Chapter II Taxation of Chargeable Gains
Non-residents etc.
128 Disposal of interests in a settlement.
1
In section 76 of the M1Taxation of Chargeable Gains Act 1992 (disposal of interests in settled property)—
a
in subsection (1), at the beginning there shall be inserted “Subject to subsection (1A) below";
b
after that subsection there shall be inserted the subsections set out in subsection (2) below; and
c
after subsection (2) there shall be inserted the subsection set out in subsection (3) below.
2
The subsections inserted after subsection (1) are as follows—
1A
Subject to subsection (3) below, subsection (1) above does not apply if—
a
the settlement falls within subsection (1B) below; or
b
the property comprised in the settlement is or includes property deriving directly or indirectly from a settlement falling within that subsection.
1B
A settlement falls within this subsection if there has been a time when the trustees of that settlement—
a
were not resident or ordinarily resident in the United Kingdom; or
b
fell to be regarded for the purposes of any double taxation relief arrangements as resident in a territory outside the United Kingdom.
3
The subsection inserted after subsection (2) is as follows—
3
Subsection (1A) above shall not prevent subsection (1) above from applying where the disposal in question is a disposal in consideration of obtaining settled property that is treated as made under subsection (2) above.
4
This section has effect in relation to any disposal on or after 6th March 1998.