Section 169 Gifts into dual resident trusts.

United Kingdom

(1)

This section applies where there is or has been a disposal of an asset to the trustees of a settlement in such circumstances that, on a claim for relief, section 165 or 260 applies, or would but for this section apply, so as to reduce the amounts of the chargeable gain and the consideration referred to in section 165(4) or 260(3).

(2)

In this section “a relevant disposal” means such a disposal as is referred to in subsection (1) above.

(3)

Relief under section 165 or 260 shall not be available on a relevant disposal if—

(a)

at the material time the trustees to whom the disposal is made F1are resident F2... in the United Kingdom F3... ; and

(b)

on a notional disposal of the asset concerned occurring immediately after the material time, the trustees would be regarded for the purposes of any double taxation relief arrangements—

(i)

as resident in a territory outside the United Kingdom; and

(ii)

as not liable in the United Kingdom to tax on a gain F4accruing on that disposal.

(4)

In subsection (3) above—

(a)

“the material time” means the time of the relevant disposal; and

(b)

a “notional disposal” means a disposal by the trustees of the asset which was the subject of the relevant disposal.

Annotations

Textual amendments

F1: Word in s. 169(3)(a) substituted (with effect in accordance with Sch. 12 para. 37(3) of the amending Act) by Finance Act 2006 (c. 25), Sch. 12 paras. 37(1)(a), 41
F2: Words in s. 169(3)(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. 102
F3: Words in s. 169(3)(a) repealed (with effect in accordance with Sch. 12 para. 37(3) of the amending Act) by Finance Act 2006 (c. 25), Sch. 12 paras. 37(1)(b), 41, Sch. 26 Pt. 3(15)
F4: Word in s. 169(3)(b)(ii) substituted (with effect in accordance with Sch. 12 para. 37(3) of the amending Act) by Finance Act 2006 (c. 25), Sch. 12 paras. 37(2), 41

Notes on Part V

Textual amendments

F1: Words in Pt. 5 heading inserted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 14 para. 1(1)
F2: Words in Act substituted (with effect for the tax year 2020-21 and subsequent tax years) by Finance Act 2020 (c. 14), Sch. 3 paras. 7(2)(a), 8 (with Sch. 3 para. 7(3))