|
| |
|
(2) | After section 63 insert— |
| |
“63A | Death: application of law in Northern Ireland |
| |
(1) | The provisions of this Act, so far as relating to the consequences of |
| |
the death of a person to whom property in Northern Ireland stands |
| |
limited for life (“the deceased”), shall have effect subject to the |
| 5 |
provisions of this section. |
| |
(2) | A person who acquires property in fee simple absolute or fee tail in |
| |
possession as a consequence of the deceased’s death shall be deemed |
| |
to have acquired all the assets forming part of the property at the |
| |
date of the deceased’s death for a consideration equal to their market |
| 10 |
| |
(3) | The provisions of this paragraph shall have effect in relation to a death |
| |
occurring on or after 6th April 2006. |
| |
12 (1) | In section 64(1) (expenses in administration)— |
| |
(a) | for the words from “an asset” to the beginning of paragraph (a) |
| 15 |
substitute “an asset held by another person as trustee, or as a |
| |
personal representative of a deceased person, to which he became |
| |
absolutely entitled as legatee or as against the trustee”, and |
| |
(b) | in paragraphs (a) and (b) for “personal representatives or trustees” |
| |
substitute “personal representative or trustee”. |
| 20 |
(2) | This paragraph shall have effect in relation to disposals made on or after 6th |
| |
| |
13 (1) | In section 77(1) (charge on settlor with interest in settlement), in the words |
| |
following paragraph (c), after “those” insert “gains”. |
| |
(2) | For section 77(8) (meaning of “derived property”) substitute— |
| 25 |
“(8) | In this section “derived property”, in relation to any property, |
| |
| |
(a) | income from that property, |
| |
(b) | property directly or indirectly representing— |
| |
(i) | proceeds of that property, or |
| 30 |
(ii) | proceeds of income from that property, or |
| |
(c) | income from property which is derived property by virtue of |
| |
| |
(3) | This paragraph shall be deemed always to have had effect. |
| |
14 (1) | In section 79B(1) (attribution to trustees of gains of non-resident company) |
| 35 |
before “trustees of a settlement” insert “the”. |
| |
(2) | This paragraph shall have effect in relation to gains accruing on or after 6th |
| |
| |
15 (1) | In section 97(7) (supplementary provisions for offshore settlements: |
| |
| 40 |
(a) | omit “the preceding provisions of”, |
| |
(b) | for the definition of “settlement” and “settlor” substitute— |
| |
““settlement” has the meaning given by section 620 of |
| |
| |
|
| |
|
| |
|
“settled property” and references (however expressed) |
| |
to property comprised in a settlement shall be |
| |
| |
(2) | After section 97(7) insert— |
| |
“(7A) | In this section, sections 86A to 96 and Schedule 4C “trustee”, in |
| 5 |
relation to a settlement in relation to which there would be no |
| |
trustees apart from this subsection, means any person in whom the |
| |
settled property or its management is for the time being vested (and |
| |
a person who is treated as a trustee of the settlement by virtue of this |
| |
subsection shall be treated as a trustee of the settlement for the |
| 10 |
purposes of section 69).” |
| |
(3) | This paragraph shall come into force on 6th April 2006 (in relation to |
| |
settlements whenever created). |
| |
16 (1) | In section 98(2) (information: application of section 745 of ICTA)— |
| |
(a) | for “(2) to (5)” substitute “(2) to (6)”, |
| 15 |
(b) | omit “and” at the end of paragraph (a), and |
| |
| |
(2) | This paragraph shall come into force on 6th April 2006 (in relation to |
| |
settlements whenever created). |
| |
17 (1) | In section 104(1) (share pooling) after “for the purposes of this Act” insert |
| 20 |
“(subject to express provision to the contrary)”. |
| |
(2) | This paragraph shall come into force on 6th April 2006. |
| |
18 (1) | In section 109(2)(a) (share pooling: pre-1982 holdings) after “for the |
| |
purposes of this Act” insert “(subject to express provision to the contrary)”. |
| |
(2) | This paragraph shall come into force on 6th April 2006. |
| 25 |
19 (1) | In section 169D(5) after “(3)” insert “and to an individual’s dependent child |
| |
| |
(2) | This paragraph shall come into force on 6th April 2006. |
| |
20 (1) | In section 217 (building societies: successor companies)— |
| |
(a) | in subsection (3)(a)— |
| 30 |
(i) | for “trustees” substitute “the trustees of a settlement”, and |
| |
(ii) | omit the word “and” at the end of the paragraph, |
| |
(b) | omit subsection (3)(b), and |
| |
(c) | in subsection (5) for “arising” substitute “accruing”. |
| |
(2) | This paragraph shall have effect in relation to a transfer falling within |
| 35 |
section 216(1) which is effected on or after 6th April 2006. |
| |
21 (1) | In section 227(2) (employee share ownership trusts: conditions for roll-over |
| |
relief) for “the trustees of a trust” substitute “the trustees of a settlement”. |
| |
(2) | This paragraph shall have effect in relation to disposals made on or after 6th |
| |
| 40 |
22 (1) | In section 228(5)(b) (employee share ownership trusts: unauthorised |
| |
arrangement) for “a beneficiary under the trust” substitute “a beneficiary |
| |
| |
|
| |
|
| |
|
(2) | In section 228(7) (qualifying employee share ownership trust) for “whether |
| |
a trust is” substitute “whether a settlement is”. |
| |
(3) | Sub-paragraph (1) shall have effect in relation to arrangements which allow |
| |
an acquisition to be made on or after 6th April 2006 (irrespective of when the |
| |
| 5 |
(4) | Sub-paragraph (2) shall have effect for the purposes of determining what |
| |
constitutes a qualifying share ownership trust for the purpose of section 227 |
| |
on or after 6th April 2006. |
| |
23 (1) | In section 251(5) (debts: trustee creditors)— |
| |
(a) | for “Where the original creditor is a trustee and the debt, when |
| 10 |
created, is settled property” substitute “Where the trustees of a |
| |
settlement are the original creditor”, and |
| |
(b) | for “as against the trustee” substitute “as against the trustees”. |
| |
(2) | This paragraph shall have effect in relation to debts created on or after 6th |
| |
| 15 |
24 (1) | In section 283(4) (repayment supplements)— |
| |
(a) | for “a trust or,” substitute “the trustees of a settlement or”, and |
| |
(b) | omit “as such (within the meaning of section 701(4) of that Act)”. |
| |
(2) | Sub-paragraph (1)(a) shall have effect in relation to a repayment made on or |
| |
| 20 |
(3) | Sub-paragraph (1)(b) shall have effect in relation to a repayment made on or |
| |
after 6th April 2006 (irrespective of the date on which the deceased person |
| |
| |
25 (1) | In section 286(3) (connected persons: trustees) omit the words following |
| |
| 25 |
(2) | After section 286(3) insert— |
| |
“(3ZA) | For the purpose of subsection (3) above— |
| |
(a) | “settlement” has the same meaning as in section 620 of |
| |
| |
(b) | “trustee”, in relation to a settlement in relation to which there |
| 30 |
would be no trustees apart from this paragraph, means any |
| |
person in whom the settled property or its management is for |
| |
| |
(3) | This paragraph shall come into force (in relation to settlements whenever |
| |
created) on 6th April 2006. |
| 35 |
26 (1) | In section 288(8) (interpretation) at the appropriate places insert— |
| |
| ““Principal settlement”... ... |
| | | | | ““Settlor” ... ... ... ... ... |
| | | | | ““Settlor of property”... ... |
| | | | | ““Sub-fund”... ... ... ... |
| | | 40 |
|
|
| |
|
| |
|
| ““Sub-fund election”... ... |
| | | | | ““Sub-fund settlement” ... |
| | | |
|
|
(2) | This paragraph shall come into force on 6th April 2006 (in relation to |
| |
settlements whenever created). |
| |
27 (1) | For paragraph 17(4) of Schedule A1 (taper relief: meaning of “derived |
| 5 |
| |
“(4) | In this paragraph “derived property”, in relation to any property, |
| |
| |
(a) | income from that property, |
| |
(b) | property directly or indirectly representing— |
| 10 |
(i) | proceeds of that property, or |
| |
(ii) | proceeds of income from that property, or |
| |
(c) | income from property which is derived property by virtue |
| |
| |
(2) | In paragraph 17(5) of Schedule A1 (property settled by company) for |
| 15 |
“section” substitute “paragraph”. |
| |
(3) | Paragraph 17(6) of Schedule A1 (meaning of “settlor) shall cease to have |
| |
| |
(4) | In paragraph 20(2) of Schedule A1 (application of section 79 to paragraph |
| |
20(1)) for “Subsections (1) to (5)” substitute “Subsections (1) to (5A)”. |
| 20 |
(5) | Sub-paragraphs (1) and (3) shall have effect for the purpose of determining |
| |
whether a company which is a settlor in relation to a settlement (whenever |
| |
created) is to be regarded as having an interest in the settlement for the |
| |
purposes of paragraph 17(1) of Schedule A1 on or after 6th April 2006. |
| |
(6) | Sub-paragraph (4) shall have effect to determine any question arising on or |
| 25 |
after 6th April 2006 as to whether, for the purposes of Schedule A1, settled |
| |
property in relation to a settlement (whenever created) originated from |
| |
more than one settlor (irrespective of when the property was provided). |
| |
28 (1) | In paragraph 1(6) of Schedule 1 (exempt amount: interpretation) for the |
| |
words ““settlor” and “excluded settlement” have the same meanings” |
| 30 |
substitute ““excluded settlement” has the same meaning”. |
| |
(2) | In paragraph 2(7) of that Schedule (meaning of “settlor” and “excluded |
| |
settlement”) omit the words from “settlor” to “intestate and”. |
| |
(3) | This paragraph shall have effect for the purposes of determining, for the |
| |
purposes of Schedule 1, whether a person is a settlor in relation to a |
| 35 |
settlement (whenever created) on or after 6th April 2006. |
| |
29 (1) | In paragraph 12 of Schedule 4A (meaning of “settlor”) for “(3) to (5)” |
| |
substitute “(3) to (5A)”. |
| |
(2) | This paragraph shall have effect to determine any question arising on or |
| |
after 6th April 2006 as to whether, for the purposes of Schedule 4A, a person |
| 40 |
is a settlor in relation to a settlement (whenever created). |
| |
|
| |
|
| |
|
| |
30 (1) | In each of the provisions set out in sub-paragraph (2) for “not resident or |
| |
ordinarily resident in the United Kingdom” substitute “neither resident nor |
| |
ordinarily resident in the United Kingdom”. |
| |
(2) | Those provisions are— |
| 5 |
(a) | section 76(1B)(a) (disposal of interest in settled property), |
| |
(b) | section 86(2)(a) (attribution of gains to settlors: residence condition), |
| |
| |
(c) | paragraphs 2(1)(c), 3(1)(a) and 4(1)(a) of Schedule 5A (settlements |
| |
| 10 |
(3) | In paragraph (2)(1)(d) of Schedule 5A for “resident or ordinarily resident” |
| |
substitute “resident and ordinarily resident”. |
| |
(4) | The amendments to sections 76(1B)(a) and 86(2)(a) shall come into force on |
| |
6th April 2007 (in relation to settlements whenever created). |
| |
(5) | The amendments to paragraph 2(1)(c) and (d) of Schedule 5A shall have |
| 15 |
effect in relation to transfers of property made on or after 6th April 2007 (in |
| |
relation to settlements whenever created). |
| |
(6) | The amendments to paragraphs 3(1)(a) and 4(1)(a) of Schedule 5A shall have |
| |
effect in relation to settlements created on or after 6th April 2007. |
| |
31 | In section 77(7) (settlor with interest in settlement) for “the settlor is, and the |
| 20 |
trustees are, either resident in the United Kingdom during any part of the |
| |
year or ordinarily resident in the United Kingdom during the year” |
| |
| |
(a) | the settlor is either resident in the United Kingdom during |
| |
any part of the year or ordinarily resident in the United |
| 25 |
Kingdom during the year, and |
| |
(b) | the trustees are resident and ordinarily resident in the United |
| |
Kingdom during any part of the year.” |
| |
32 | In section 83A(3) (trustee residence: split years)— |
| |
| 30 |
(i) | after “resident” insert “and ordinarily resident”, and |
| |
(ii) | at the end omit “or”, and |
| |
| |
33 | Paragraphs 31 and 32 shall come into force on 6th April 2007 (in relation to |
| |
settlements whenever created). |
| 35 |
34 (1) | In each of the provisions set out in sub-paragraph (2) for “resident or |
| |
ordinarily resident in the United Kingdom” substitute “resident and |
| |
ordinarily resident in the United Kingdom”. |
| |
(2) | Those provisions are— |
| |
(a) | section 83A(4)(b) (trustees to be treated as non-resident), |
| 40 |
(b) | section 85A(3) (attribution of gains to beneficiaries on transfer of |
| |
| |
(c) | section 86(3) (assumption as to residence), |
| |
(d) | section 87(2) (computation of gains), |
| |
(e) | paragraph 5(2) of Schedule 4A (dual resident trustees), |
| 45 |
|
| |
|
| |
|
(f) | paragraphs 4(2) and 10(1) and (3) of Schedule 4C (trustees: |
| |
chargeable amount and residence), and |
| |
(g) | paragraphs 3(1)(b) and 4(1)(b) of Schedule 5A (settlement with |
| |
foreign element: information). |
| |
(3) | The amendments to sections 83A(4)(b), 85A(3), 86(3) and 87(2), paragraph |
| 5 |
5(2) of Schedule 4A and paragraphs 4(2) and 10(1) and (3) of Schedule 4C |
| |
shall come into force on 6th April 2007 (in relation to settlements whenever |
| |
| |
(4) | The amendments to paragraphs 3(1)(b) and 4(1)(b) of Schedule 5A shall have |
| |
effect in relation to settlements created on or after 6th April 2007. |
| 10 |
35 (1) | In each of the provisions set out in sub-paragraph (2)— |
| |
(a) | for “resident in the United Kingdom during any part of the year or |
| |
ordinarily resident in the United Kingdom during the year” |
| |
substitute “resident and ordinarily resident in the United Kingdom |
| |
during any part of the year”, and |
| 15 |
(b) | for “such residence or ordinary residence” substitute “such residence |
| |
| |
(2) | Those provisions are— |
| |
(a) | section 86(2)(b) (trustees resident outside United Kingdom), |
| |
(b) | section 88(1) (gains of dual resident settlements), and |
| 20 |
(c) | paragraph 5(1) of Schedule 4C (chargeable amount: dual resident |
| |
| |
(3) | Sub-paragraph (2)(c) shall have effect in relation to a transfer of value made |
| |
on or after 6th April 2007 (in relation to settlements whenever created). |
| |
36 (1) | In each of the provisions set out in sub-paragraph (2) for “at no time resident |
| 25 |
or ordinarily resident in the United Kingdom” substitute “at no time |
| |
resident and ordinarily resident in the United Kingdom”. |
| |
(2) | Those provisions are— |
| |
(a) | section 87(1) (attribution of gains to beneficiaries), and |
| |
(b) | paragraph 4(1) of Schedule 4C (chargeable amount: non-resident |
| 30 |
| |
(3) | Sub-paragraph (2)(b) shall have effect in relation to a transfer of value made |
| |
on or after 6th April 2007 (in relation to settlements whenever created). |
| |
37 (1) | In section 169(3)(a) (availability of hold-over relief)— |
| |
(a) | for “fall to be treated, under section 69, as” substitute “are”, and |
| 35 |
(b) | omit the words from “, although” to the end of the paragraph. |
| |
(2) | In section 169(3)(b)(ii) (notional disposal) for “arising” substitute “accruing”. |
| |
(3) | This paragraph shall have effect in relation to relevant disposals (within the |
| |
meaning given by section 169(2)) made on or after 6th April 2007 (in relation |
| |
to settlements whenever created). |
| 40 |
38 | In paragraph 2(7)(a) of Schedule 1 (meaning of “excluded settlement”) omit |
| |
“treated under section 69(1) as”. |
| |
39 | In paragraph 5(1) of Schedule 4A (residence of trustees) for the words from |
| |
“either” to the end of the sub-paragraph substitute “resident and ordinarily |
| |
resident in the United Kingdom during any part of the year”. |
| 45 |
|
| |
|
| |
|
40 | In paragraph 10(2) of Schedule 4C (capital payments received by |
| |
beneficiaries when trustees resident in United Kingdom) for paragraphs (a) |
| |
and (b) substitute “during the whole of which the trustees are resident and |
| |
ordinarily resident in the United Kingdom”. |
| |
41 | Paragraphs 35 to 40 shall, unless otherwise expressly provided, come into |
| 5 |
force on 6th April 2007 (in relation to settlements whenever created). |
| |
| |
42 | After section 73(1) of TCGA 1992 (death of life tenant: exclusion of |
| |
| |
“(1A) | Subsection (1)(b) above shall be treated as having effect in relation to |
| 10 |
a sub-fund settlement if the property does not revert to the trustees |
| |
of the principal settlement in relation to that sub-fund settlement by |
| |
| |
(a) | a sub-fund election is or has been made in respect of another |
| |
sub-fund of the principal settlement, and |
| 15 |
(b) | the property becomes comprised in that other sub-fund |
| |
settlement on the death of the person entitled to the interest |
| |
| |
43 | In section 286(3) of TCGA 1992 (connected persons: trustees)— |
| |
(a) | omit “and” at the end of paragraph (b), and |
| 20 |
(b) | after paragraph (c) insert— |
| |
“(d) | if the settlement is the principal settlement in relation |
| |
to one or more sub-fund settlements, the trustees of |
| |
the sub-fund settlements, and |
| |
(e) | if the settlement is a sub-fund settlement in relation to |
| 25 |
a principal settlement, the trustees of any other sub- |
| |
fund settlements in relation to the principal |
| |
| |
44 (1) | At the beginning of Schedule 1 to TCGA 1992 (trustees: exempt amount, etc) |
| |
| 30 |
“A1 (1) | In determining the exempt amount available to the trustees of a |
| |
settlement in relation to a year of assessment— |
| |
(a) | a principal settlement and its sub-fund settlements shall be |
| |
treated, for the purposes of paragraphs 1 and 2 below, as if |
| |
no sub-fund elections had been made, and |
| 35 |
(b) | paragraph 3 below shall apply for the purposes of |
| |
determining the exempt amount available to each member |
| |
of the class consisting of a principal settlement and its sub- |
| |
| |
(2) | The reference in sub-paragraph (1) above to a principal settlement |
| 40 |
and its sub-fund settlements means a principal settlement in |
| |
respect of which one or more sub-fund elections are treated as |
| |
| |
(2) | After paragraph 2 of Schedule 1 to TCGA 1992 insert— |
| |
“3 (1) | The exempt amount available in relation to a year of assessment to |
| 45 |
the trustees of each settlement in the class consisting of a principal |
| |
|
| |
|