For section 686A of ICTA substitute—

“686AReceipts to be treated as income to which section 686 applies

(1)

Where the trustees of a settlement (other than the trustees of a unit trust scheme)—

(a)

receive or are entitled to a payment of a kind specified in subsection (2), or

(b)

are liable for tax in respect of a gain on a chargeable event of a kind specified in subsection (2),

the payment or gain shall be treated as if it were income to which section 686 applies.

(2)

Those payments and gains are—

(a)

a payment made by a company—

(i)

on the redemption, repayment or purchase of its own shares, or

(ii)

on the purchase of rights to acquire its own shares,

(b)

a gain arising on a chargeable event in respect of which the trustees are liable for tax under section 467 of ITTOIA 2005 (gains on contracts for life insurance, etc), other than a gain to which subsection (7)(a) of that section applies,

(c)

if the trustees are resident in the United Kingdom, a profit on the disposal of a deeply discounted security in respect of which the trustees are liable for tax under section 429 of ITTOIA 2005,

(d)

a sum to which Chapter 4 of Part 3 of ITTOIA 2005 applies,

(e)

a profit on the disposal of a future or option in respect of which the trustees are liable for tax under section 557 of ITTOIA 2005, if none of conditions A to C in section 568 of that Act are met,

(f)

a profit on the disposal of a deposit in respect of which the trustees are liable for tax under section 554 of ITTOIA 2005,

(g)

the proceeds of sale of a foreign dividend coupon in respect of which the trustees are liable for tax under section 573 of ITTOIA 2005,

(h)

a sum which is chargeable to tax under section 68(2) or 71(4) of the Finance Act 1989 (c. 26) (employee share ownership trusts: chargeable events),

(i)

an offshore income gain (within the meaning of section 761 of this Act), and

(j)

a gain on a disposal of land to which section 776 of this Act applies.”