Paragraph 132

In paragraph 1, for sub-paragraphs (2) and (3) substitute—

“(2)

The transferor settlement is regarded for the purposes of this Schedule as having a “Schedule 4C pool”.

(3)

The Schedule 4C pool contains the section 2(2) amounts for the settlement that are outstanding at the end of the tax year in which the original transfer is made (see paragraph 1A).

(3A)

The section 2(2) amount for that tax year is increased by—

(a)

the amount of Schedule 4B trust gains accruing by virtue of the original transfer (see paragraphs 3 to 7), and

(b)

the total amount of any further Schedule 4B trust gains accruing by virtue of any further transfers of value to which that Schedule applies that are made by the trustees in that tax year.”