476How to work out whether settlor meets condition CU.K.
(1)This section applies for the purpose of working out whether a settlor (“S”) in relation to a settlement meets condition C at a time.
(2)If—
(a)the settlement arose on S's death (whether by S's will, on S's intestacy or in any other way), and
(b)immediately before S's death, S was UK resident, ordinarily UK resident or domiciled in the United Kingdom,
then S meets condition C from the time of S's death until S ceases to be a settlor in relation to the settlement.
(3)If—
(a)the settlement is not within subsection (2)(a), and
(b)at a time when S made the settlement (or is treated for the purposes of the Income Tax Acts as making the settlement), S was UK resident, ordinarily UK resident or domiciled in the United Kingdom,
then S meets condition C from that time until S ceases to be a settlor in relation to the settlement.
(4)Further, if—
(a)there is a transfer of property in relation to which section 471 applies,
(b)S is a settlor in relation to settlement 2 as a result of that section, and
(c)immediately before the disposal by the trustees of settlement 1, S meets condition C as a settlor in relation to settlement 1 as a result of subsection (2) or (3) or this subsection,
then S meets condition C as a settlor in relation to settlement 2 from the time S becomes such a settlor until S ceases to be such a settlor.
(5)“Settlement 1” and “settlement 2” are to be read in accordance with section 470(1).