Paragraph 13B Effect of this Schedule on section 65(5) IHTA 1984 and section 260(2) of TCGA 1992F1

(1)

The effects of Parts 1 and 2 of this Schedule are to be ignored for the purposes of section 65(5)(b) of IHTA 1984 (and accordingly will not prevent any amount being regarded as income of a person for the purposes of income tax for the purposes of that section).

(2)

Where—

(a)

the trustees of a settlement make a capital payment to an individual,

(b)

the making of that payment results in the individual having qualifying overseas capital,

(c)

that qualifying overseas capital is designated,

so much of the deemed disposal under section 71 of TCGA 1992 arising on the making of the payment as reflects the designated qualifying overseas capital is (despite sub-paragraph (1)) treated as a chargeable transfer within the meaning of IHTA 1984 for the purposes only of section 260(2)(a) of TCGA 1992 (gifts on which inheritance tax is chargeable etc).

Annotations

Textual amendments

F1: Sch. 10 para. 13B and cross-heading inserted (with effect in accordance with Sch. 3 para. 18(1) of the amending Act) by Finance Act 2026 (c. 11), Sch. 3 paras. 15, 18(1)