Section 169B Gifts to settlor-interested settlements etcF1

(1)

Neither section 165(4) nor section 260(3) shall apply in relation to a disposal (“the relevant disposal”)—

(a)

made by a person (“the transferor”) to the trustees of a settlement, and

(b)

in respect of which Condition 1 or Condition 2 below is satisfied.

(2)

Condition 1 is that, immediately after the making of the relevant disposal,—

(a)

there is a settlor (see section 169E) who has an interest in the settlement (see section 169F), or

(b)

an arrangement (see section 169G) subsists under which such an interest will or may be acquired by a settlor.

(3)

Condition 2 is that—

(a)

a chargeable gain would (assuming that neither section 165(4) nor section 260(3) applied in relation to the relevant disposal) accrue to the transferor on that disposal,

(b)

in computing the gain, the allowable expenditure would to any extent fall to be reduced in consequence, directly or indirectly, of a claim under section 165 or 260 in respect of an earlier disposal made by an individual (whether or not to the transferor), and

(c)

immediately after the making of the relevant disposal,—

(i)

that individual has an interest in the settlement, or

(ii)

an arrangement subsists under which such an interest will or may be acquired by him.

(4)

This section is subject to section 169D (exception for maintenance funds for historic buildings and certain settlements for disabled persons).

Annotations

Textual amendments

F1: Ss. 169B-169G inserted (with effect in accordance with Sch. 21 para. 10(4) of the amending Act) by Finance Act 2004 (c. 12), Sch. 21 para. 4

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))