104(1)Section 497 applies with the following modifications in relation to the trustees of a settlement established prior to the tax year 2007-08 if the current tax year is the tax year 2007-08.U.K.
(2)It also so applies if—
(a)the current tax year is a tax year subsequent to the tax year 2007-08, and
(b)the trustees have been UK resident for no tax year prior to the current tax year or the last tax year prior to the current tax year for which they were UK resident is a tax year prior to the tax year 2007-08.
(3)It applies as if in subsection (1) for Step 1 there were substituted— “Step 1 Take the amount of the trustees' final section 687(3) tax pool and deduct from that amount (but not so that it goes below nil) the total of all tax (if any) treated under section 687(2)(a) of ICTA as being paid as a result of payments made by the trustees in the tax year 2006-07. “The amount of the trustees' final section 687(3) tax pool” is the total amount—
(a)available to the trustees under section 687(3) of ICTA for setting against tax assessable on them under section 687(2)(b) of that Act for the tax year 2006-07, or
(b)which would have been so available had tax been so assessable.”
(4)It applies as if subsections (2) and (3) were omitted.