Paragraph 4 Temporary breach of trustee independence requirement or residence requirement arising from death of trustee

In section 236O, after subsection (2) insert—

“(2A)

Where—

(a)

a disqualifying event falling within subsection (2)(za) occurs (trustees cease to be resident in the United Kingdom),

(b)

the event only occurs as a result of the death of a trustee of the settlement, and

(c)

within the period of 6 months beginning with the death of the trustee, the trustees become resident in the United Kingdom,

the disqualifying event is to be ignored.

(2B)

Where—

(a)

a disqualifying event falling within subsection (2)(ba) occurs (trustee independence requirement ceases to be met),

(b)

the event only occurs as a result of—

(i)

the death of a trustee of the settlement, or

(ii)

the death of a director of a company that is a trustee of the settlement, and

(c)

within the period of 6 months beginning with that death, the settlement meets the trustee independence requirement,

the disqualifying event is to be ignored.”

In section 236P, after subsection (2) insert—

“(2A)

Where—

(a)

a disqualifying event falling within subsection (2)(ba) occurs (trustee independence requirement ceases to be met),

(b)

the event only occurs as a result of—

(i)

the death of a trustee of the settlement, or

(ii)

the death of a director of a company that is a trustee of the settlement, and

(c)

within the period of 6 months beginning with that death, the settlement meets the trustee independence requirement,

the disqualifying event is to be ignored.”

The amendments made by this paragraph have effect in relation to disposals made on or after 30 October 2024.