Part 9Special rules about settlements and trustees

Chapter 2General provision about settlements and trustees

Trustees

476How to work out whether settlor meets condition C

(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 F1... 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 F2... 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.

F3(3A)

Section 835BA (deemed domicile) applies for the purposes of subsections (2)(b) and (3)(b).

(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).