Income Tax (Trading and Other Income) Act 2005

467 Person liable: UK resident trustees U.K.

(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.

[F1 (1A) If trustees are liable for tax under this Chapter, the gain is treated for income tax purposes as income of the trustees.]

(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,

[F2 (aa) is UK resident but the gain arises in the overseas part of a tax year that is, as respects the person who created the trusts, a split year,]

(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

[F3 (c) neither section 465 nor section 466 applies.]

(6) Condition D is that the rights under the policy or contract are held as security for a debt owed by the trustees.

[F4 (7) If trustees are liable for tax under this Chapter, it is charged at the [F5 basic rate] if—

(a) condition A is met, or

(b) condition D is met and the trustees are trustees of a charitable trust.]

Textual Amendments

F1 S. 467(1A) inserted (with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1027, 1034, Sch. 1 para. 531(2) (with transitional provisions and savings in Sch. 2)

F2 S. 467(4)(aa) inserted (with effect in accordance with Sch. 45 para. 153(2) of the amending Act) by Finance Act 2013 (c. 29), Sch. 45 para. 85

F3 S. 467(5)(c) substituted (with effect in accordance with Sch. 14 para. 18 of the amending Act) by Finance Act 2008 (c. 9), Sch. 14 para. 11

F4 S. 467(7) substituted (with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1027, 1034, Sch. 1 para. 531(3) (with transitional provisions and savings in Sch. 2)

F5 Words in s. 467(7) substituted (with effect in accordance with Sch. 1 para. 65 of the amending Act) by Finance Act 2008 (c. 9), Sch. 1 para. 53