SCHEDULES
SCHEDULE 12Settlements: amendment of TCGA 1992 etc
Part 3Consequential and minor amendments
44Sub-fund settlements
1
At the beginning of Schedule 1 to TCGA 1992 (trustees: exempt amount, etc) insert—
A1
1
In determining the exempt amount available to the trustees of a settlement in relation to a year of assessment—
a
a principal settlement and its sub-fund settlements shall be treated, for the purposes of paragraphs 1 and 2 below, as if no sub-fund elections had been made, and
b
paragraph 3 below shall apply for the purposes of determining the exempt amount available to each member of the class consisting of a principal settlement and its sub-fund settlements.
2
The reference in sub-paragraph (1) above to a principal settlement and its sub-fund settlements means a principal settlement in respect of which one or more sub-fund elections are treated as having taken effect.
2
After paragraph 2 of Schedule 1 to TCGA 1992 insert—
3
1
The exempt amount available in relation to a year of assessment to the trustees of each settlement in the class consisting of a principal settlement and its sub-fund settlements shall be the exempt amount available to the trustees of the principal settlement in relation to the year, determined in accordance with paragraph 1 or 2 above as if no sub-fund elections had been made.
2
But if there are two or more non-excluded settlements in the class consisting of a principal settlement and its sub-fund settlements, the exempt amount available to the trustees of each settlement in the class in relation to the year shall be the amount specified in sub-paragraph (1) above divided by the number of non-excluded settlements in the class.
3
In this paragraph—
“excluded settlement” has the meaning given by paragraph 2(7) above, and
references to a settlement having sub-fund settlements, and similar expressions, are references to a settlement being the principal settlement in respect of which one or more sub-fund elections are treated as having taken effect.