Part 4Savings and investment income
Chapter 9Gains from contracts for life insurance etc.
Person liable etc.
467Person liable: UK resident trustees
1
Trustees are liable for tax under this Chapter if immediately before the chargeable event in question occurs they are UK resident and condition A, B, C or D is met.
2
Condition A is that the rights under the policy or contract are held by the trustees on charitable trusts.
3
Condition B is that—
a
those rights are held by the trustees on non-charitable trusts, and
b
one or more of the absent settlor conditions is met.
4
The absent settlor conditions are that the person who created the trusts—
a
is non-UK resident,
b
has died, or
c
in the case of a company or foreign institution (see section 468(5)), has been dissolved or wound up or has otherwise come to an end.
5
Condition C is that—
a
the rights under the policy or contract are held by the trustees on non-charitable trusts,
b
condition B does not apply, and
c
neither section 465 or 466 above nor section 547(1)(b) of ICTA (circumstances in which a company is liable for tax under Chapter 2 of Part 13 of ICTA) applies.
6
Condition D is that the rights under the policy or contract are held as security for a debt owed by the trustees.
7
If trustees are liable for tax under this Chapter, it is charged—
a
at the lower rate if—
i
condition A is met, or
ii
condition D is met and the trustees are trustees of a charitable trust, and
b
at the rate applicable under section 686(1A) of ICTA (rate applicable to trusts) in any other case.