Paragraph 5 F1

United Kingdom

(1)

If the transfer of value is made in a year of assessment where—

(a)

the trustees of the transferor settlement are F2resident F3... in the United Kingdom during any part of the year, and

(b)

at any time of F4such residence F5... they fall to be regarded for the purposes of any double taxation relief arrangements as resident in a territory outside the United Kingdom,

the chargeable amount is computed under this paragraph.

(2)

Where this paragraph applies the chargeable amount is the lesser of—

(a)

the amount on which the trustees would be chargeable to tax under section 2(2) by virtue of Schedule 4B on the assumption that the double taxation relief arrangements did not apply F6(and the disposals which Schedule 4B treats them as having made were made), and

(b)

the amount on which the trustees would be so chargeable to tax by virtue of disposals of protected assets.

(3)

For this purpose “protected assets” has the meaning given by section 88(4).

Annotations

Textual amendments

F1: Sch. 4C inserted (with effect in accordance with s. 92(5) of the amending Act) by Finance Act 2000 (c. 17), s. 92(4), Sch. 26 Pt. I
F2: Words in Sch. 4C para. 5(1) substituted (with effect in accordance with Sch. 12 para. 35(3) of the amending Act) by Finance Act 2006 (c. 25), Sch. 12 paras. 35(1)(a)(2)(c), 41
F3: Words in Sch. 4C para. 5(1)(a) omitted (with effect in accordance with Sch. 46 para. 112 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 46 para. 107(4)(a)
F4: Words in Sch. 4C para. 5(1) substituted (with effect in accordance with Sch. 12 para. 35(3) of the amending Act) by Finance Act 2006 (c. 25), Sch. 12 paras. 35(1)(b)(2)(c), 41
F5: Words in Sch. 4C para. 5(1)(b) omitted (with effect in accordance with Sch. 46 para. 112 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 46 para. 107(4)(b)
F6: Words in Sch. 4C para. 5(2)(a) inserted (with effect in accordance with Sch. 7 para. 147 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 135 (with Sch. 7 para. 155)

Notes on Schedule 4C

Modifications

C1: Sch. 4C modified (21.7.2008) by Finance Act 2008 (c. 9), Sch. 7 paras. 152-155
C2: Sch. 4C applied (with modifications) by Income and Corporation Taxes Act 1988 (c. 1), s. 762(3) (as substituted (with effect in accordance with Sch. 7 para. 98 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 93(3))
C3: Sch. 4C applied (with modifications) (with effect in accordance with art. 1(2)(3), Sch. 1 of the affecting S.I.) by The Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), regs. 1(1), 20(3)