Section 467 Person liable: UK resident trustees

United Kingdom

(1)

Trustees are liable for tax under this Chapter if immediately before the chargeable event in question occurs they are UK resident and condition A, B, C or D is met.

F1(1A)

If trustees are liable for tax under this Chapter, the gain is treated for income tax purposes as income of the trustees.

(2)

Condition A is that the rights under the policy or contract are held by the trustees on charitable trusts.

(3)

Condition B is that—

(a)

those rights are held by the trustees on non-charitable trusts, and

(b)

one or more of the absent settlor conditions is met.

(4)

The absent settlor conditions are that the person who created the trusts—

(a)

is non-UK resident,

F2(aa)

is UK resident but the gain arises in the overseas part of a tax year that is, as respects the person who created the trusts, a split year,

(b)

has died, or

(c)

in the case of a company or foreign institution (see section 468(5)), has been dissolved or wound up or has otherwise come to an end.

(5)

Condition C is that—

(a)

the rights under the policy or contract are held by the trustees on non-charitable trusts,

(b)

condition B does not apply, and

F3(c)

neither section 465 nor section 466 applies.

(6)

Condition D is that the rights under the policy or contract are held as security for a debt owed by the trustees.

F4(7)

If trustees are liable for tax under this Chapter, it is charged at F5the savings basic rate if—

(a)

condition A is met, or

(b)

condition D is met and the trustees are trustees of a charitable trust.

Annotations

Textual amendments

F1: S. 467(1A) inserted (with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1027, 1034, Sch. 1 para. 531(2) (with transitional provisions and savings in Sch. 2)
F2: S. 467(4)(aa) inserted (with effect in accordance with Sch. 45 para. 153(2) of the amending Act) by Finance Act 2013 (c. 29), Sch. 45 para. 85
F3: S. 467(5)(c) substituted (with effect in accordance with Sch. 14 para. 18 of the amending Act) by Finance Act 2008 (c. 9), Sch. 14 para. 11
F4: S. 467(7) substituted (with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1027, 1034, Sch. 1 para. 531(3) (with transitional provisions and savings in Sch. 2)
F5: Words in s. 467(7) substituted (for the tax year 2027-28 and subsequent tax years) by Finance Act 2026 (c. 11), s. 6(8), Sch. 1 para. 43

Notes on Chapter 9

Modifications

C1: Pt. 4 Ch. 9 applied (with modifications) by The Individual Savings Account Regulations 1998 (S.I. 1998/1870), reg. 36 (as added by S.I. 1998/3174, reg. 12 and as amended (6.4.2008) by S.I. 2008/704, regs. 1, 17(4))
C2: Pt. 4 Ch. 9 applied (with modifications) by The Child Trust Funds Regulations 2004 (S.I. 2004/1450), reg. 38 (as amended (6.4.2010) by S.I. 2010/582, regs. 1, 18)
C3: Pt. 4 Ch. 9: power to exclude conferred (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 61(4) (with s. 147, Sch. 17)