Paragraph 14 Purchase by settlement if beneficiary entitled to occupy, or to income from, dwellingF1

(1)

Sub-paragraph (2) applies to a chargeable transaction if—

(a)

the purchaser is, or (if there is more than one) the purchasers include, a person (P) who is acting as a trustee of a settlement, and

(b)

under the terms of the settlement a beneficiary is entitled—

(i)

to occupy the dwelling or dwellings for life, or

(ii)

to income earned in respect of the dwelling or dwellings.

(2)

In determining for the purposes of this Part of this Act whether the chargeable transaction is a “non-resident transaction”, paragraph 2(1)(a) (condition that purchaser be non-resident) has effect as if a reference to the purchaser or purchasers—

(a)

included the beneficiary or beneficiaries of the settlement, and

(b)

did not include P.

(3)

In this paragraph “settlement” does not include a settlement under a unit trust scheme.

Annotations

Textual amendments

F1: Sch. 9A inserted (with effect in accordance with Sch. 16 para. 6 of the amending Act) by Finance Act 2021 (c. 26), Sch. 16 para. 5