SCHEDULES

SCHEDULE 15Charge to income tax on benefits received by former owner of property

Intangible property comprised in settlement where settlor retains an interest

8

1

This paragraph applies where—

a

the terms of a settlement, as they affect any property comprised in the settlement, are such that any income arising from the property would be treated by virtue of F1 section 624 of ITTOIA 2005 (income arising under settlement where settlor retains an interest) as income of a person (“the chargeable person”) who is for the purposes of F2Chapter 5 of Part 5 of that Act the settlor,

b

any such income would be so treated even if F3section 625(1) of ITTOIA 2005 (settlor's retained interest) did not include any reference to the spouse F4or civil partner of the settlor, and

c

that property includes any property as respects which the condition in sub-paragraph (2) is met (“the relevant property”).

2

The condition mentioned in sub-paragraph (1)(c) is that the property is intangible property which is or represents property which the chargeable person settled, or added to the settlement, after 17th March 1986.

3

Where this paragraph applies in respect of the whole or part of a year of assessment, an amount equal to the chargeable amount determined under paragraph 9 is to be treated as income of the chargeable person chargeable to income tax.