Paragraph 6

For any year of assessment during the whole or part of which any property is settled property, not being a year of assessment for which paragraph 5(1) above applies, F1subsections (1), (4) and (5) shall apply to the trustees of a settlement as they apply to an individual but with the following modifications.

In subsections (1) and (4) for F3“the exempt amount for the year” there shall be substituted “one half of the exempt amount for the year”.

Subsection (5) shall apply only to the trustees of a settlement made before 7th June 1978 and, in relation to such trustees, shall have effect with the substitution for “the exempt amount for the year” and “twice the exempt amount for the year” of “one half of the exempt amount for the year” and “the exempt amount for the year” respectively.

In relation to a settlement which is one of two or more qualifying settlements comprised in a group, sub-paragraph (2) above shall have effect as if for the reference to “one half of the exempt amount for the year” there were substituted a reference to “one tenth of that exempt amount” or, if it is more, to such amount as results from dividing one half of the exempt amount for the year by the number of settlements in the group.

For the purposes of sub-paragraph (4) above—

If, in consequence of two or more persons being settlors in relation to it, a settlement is comprised in two or more groups comprising different numbers of settlements, sub-paragraph (4) above shall apply to it as if the number by which one half of the exempt amount for the year is to be divided were the number of settlements in the largest group.

In this paragraph “settlor” has the meaning given by section F4681(4) of the Taxes Act 1988 and includes, in the case of a settlement arising under a will or intestacy, the testator or intestate and “excluded settlement” means—

The schemes and funds referred to in sub-paragraph (7)(b)(ii) above are funds to which section 615(3) of the Taxes Act 1988 applies, schemes and funds approved under section 620 or 621 of that Act, sponsored superannuation schemes as defined in section 624 of that Act and exempt approved schemes and statutory schemes as defined in Chapter I of Part XIV of that Act.

An inspector may by notice in writing require any person, being a party to a settlement, to furnish him within such time as he may direct (not being less than twenty-eight days) with such particulars as he thinks necessary for the purposes of this paragraph.