|
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
235
Schedule 20, page 116, line 31 [Vol II], leave out '22nd March 2006' and insert '6th April 2007'.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
296
Schedule 20, page 116, line 31 [Vol II], leave out 'but before 6th April 2008'.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
297
Schedule 20, page 116, line 35 [Vol II], after 'section', insert '71 or'.
Dawn Primarolo
387
Schedule 20, page 116, line 37 [Vol II], at end insert—
'49D Transitional serial interest: contracts of life insurance
(1) Where—
| (a) | a person ("C") is beneficially entitled to an interest in possession in settled property ("the present interest"), and |
| (b) | on C's becoming beneficially entitled to the present interest, the settled property consisted of, or included, rights under a contract of life insurance entered into before 22nd March 2006, |
the present interest so far as subsisting in rights under the contract, or in property comprised in the settlement that directly or indirectly represents rights under the contract, is a "transitional serial interest" for the purposes of this Chapter if the following conditions are met.
(2) Condition 1 is that—
| (a) | the settlement commenced before 22nd March 2006, and |
| (b) | immediately before 22nd March 2006— |
| (i) | the property then comprised in the settlement consisted of, or included, rights under the contract, and |
| (ii) | those rights were property in which C, or some other person, was beneficially entitled to an interest in possession ("the earlier interest"). |
(3) Condition 2 is that—
| (a) | the earlier interest came to an end at a time on or after 6th April 2008 ("the earlier-interest end-time") on the death of the person beneficially entitled to it and C became beneficially entitled to the present interest— |
| (i) | at the earlier-interest end-time, or |
| (ii) | on the coming to an end, on the death of the person beneficially entitled to it, of an interest in possession to which that person became beneficially entitled at the earlier-interest end-time, or |
| (iii) | on the coming to an end of the second or last in an unbroken sequence of two or more consecutive interests in possession to the first of which a person became beneficially entitled at the earlier-interest end-time and each of which ended on the death of the person beneficially entitled to it, or |
| (b) | C became beneficially entitled to the present interest— |
| (i) | on the coming to an end, on the death of the person entitled to it, of an interest in possession that is a transitional serial interest under section 49C(1)(a), or |
| (ii) | on the coming to an end of the second or last in an unbroken sequence of two or more consecutive interests in possession the first of which was a transitional serial interest under section 49C(1)(a) and each of which ended on the death of the person beneficially entitled to it. |
(4) Condition 3 is that rights under the contract were comprised in the settlement throughout the period beginning with 22nd March 2006 and ending with C's becoming beneficially entitled to the present interest.
(5) Condition 4 is that—
| (a) | section 71A below does not apply to the property in which the present interest subsists, and |
| (b) | the present interest is not a disabled person's interest.".'. |
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
299
Schedule 20, page 116, line 37 [Vol II], at end insert—
'49D Alternative condition to be transitional serial interest
(1) Where a person ("B") is beneficially entitled to an interest in possession in settled property ("the current interest") for the purposes of this Chapter that interest is "a transitional serial interest" if the following conditions are met.
(2) Condition 1 is that—
| (a) | the settlement commenced before 22nd March 2006, and |
| (b) | immediately before 22nd March 2006, the property then comprised in the settlement was settled property to which section 71 applied. |
(3) Condition 2 is that B became beneficially entitled to the current interest in that property after 22nd March 2006 but before 6th April 2008.
(4) Condition 3 is that until B became entitled to the current interest the property remained property to which section 71 applied.
(5) To determine whether section 71 applied for the purposes of Condition 3 above, the amendments to section 71 made by pararagraph 3 of Schedule 20 to the Finance Act 2006 are to have effect.'.
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
301
Schedule 20, page 116, line 37 [Vol II], at end insert—
'49D Immediate self-settled interest
(1) Where a person "S" is beneficially entitled to an interest in possession in settled property, for the purposes of this Chapter that interest is an "immediate self-settled interest" only if the following conditions are satisfied.
(2) Condition 1 is that S is the settlor in relation to the settled property.
(3) Condition 2 is that S became beneficially entitled to the interest in possession on the creation of the settlement.
(4) Condition 3 is that—
| (a) | section 71A below does not apply to the property in which the interest subsists, and |
| (b) | the interest is not a disabled person's interest.'. |
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
320
Schedule 20, page 116, line 37 [Vol II], at end insert—
'49D Relationship breakdown settlement interest
(1) Where a person ("L") is beneficially entitled to an interest in possession in settled property, for the purposes of this Chapter that interest is a "relationship breakdown settlement interest" only if the following conditions are satisfied.
(2) Condition 1 is that the settlement was effected, or if there was a prior settlement it was confirmed or varied by a court order in proceedings for the following types of provision—
| (a) | financial relief for the parties to a marriage and any children of the family in connection with proceedings for divorce, nullity of marriage or judicial separation including, but not limited to, property adjustment orders or variation of settlement orders under section 24 of the Matrimonial Causes Act 1973; or |
| (b) | financial relief for the parties of a civil partnership in connection with proceedings for dissolution of the civil partnership including, but not limited to, property adjustment orders or variation of settlement orders under Schedule 5 of the Civil Partnership Act 2004; or |
| (c) | where a marriage has been dissolved or annulled or the parties to a marriage have been legally separated, by means of judicial or other proceedings in an overseas country and the divorce, annulment or legal separation is entitled to be recognised as valid in England and Wales, financial relief for the parties to the marriage and any children of the family including, but not limited to, property adjustment orders or variation of settlement orders under section 17 of the Matrimonial and Family Proceedings Act 1984; or |
| (d) | financial relief for the benefit of a child including, but not limited to, a transfer or settlement of property under paragraph 1 of Schedule 1 of the Children Act 1989. |
(3) Condition 2 is that L became beneficially entitled to the interest in possession on the court order coming into effect.
(4) Condition 3 is that—
| (a) | section 71A below does not apply to the property in which the interest subsists, and |
| (b) | the interest is not a disabled person's interest.'. |
Mrs Theresa Villiers
Mr Mark Francois
Mr Mark Hoban
Mr Paul Goodman
Andrew Selous
236
Schedule 20, page 116, line 38 [Vol II], leave out '22nd March 2006' and insert '6th April 2007'.
Dawn Primarolo
388
Schedule 20, page 116, line 41 [Vol II], leave out from beginning to 'After' in line 4 on page 117 and insert—
| '6 | (1) | After section 89 (trusts for disabled persons) there is inserted— |
"89A Self-settlement by person with condition expected to lead to disability
(1) This section applies to property transferred by a person ("A") into settlement on or after 22nd March 2006 if—
| (a) | A was beneficially entitled to the property immediately before transferring it into settlement, |
| (b) | A satisfies the Commissioners for Her Majesty's Revenue and Customs that, when the property was transferred into settlement, A had a condition that it was at that time reasonable to expect would have such effects on A as to lead to A becoming— |
| (i) | a person falling within section 89(4)(a) above, |
| (ii) | in receipt of an attendance allowance mentioned in section 89(4)(b) above, or |
| (iii) | in receipt of a disability living allowance mentioned in section 89(4)(c) above by virtue of entitlement to the care component at the highest or middle rate, and |
| (c) | the property is held on trusts— |
| (i) | under which, during the life of A, no interest in possession in the settled property subsists, and |
| (ii) | which secure that Conditions 1 and 2 are met. |
(2) Condition 1 is that if any of the settled property is applied during A's life for the benefit of a beneficiary, it is applied for the benefit of A.
(3) Condition 2 is that any power to bring the trusts mentioned in subsection (1)(c) above to an end during A's life is such that, in the event of the power being exercised during A's life, either—
| (a) | A or another person will, on the trusts being brought to an end, be absolutely entitled to the settled property, or |
| (b) | on the trusts being brought to an end, a disabled person's interest within section 89B(1)(a) or (c) will subsist in the settled property. |
(4) If this section applies to settled property transferred into settlement by a person, the person shall be treated as beneficially entitled to an interest in possession in the settled property.
(5) For the purposes of subsection (1)(b)(ii) above, assume—
| (a) | that A will meet the conditions as to residence under section 64(1) of whichever of the 1992 Acts is applicable, and |
| (b) | that there will be no provision made by regulations under section 67(1) and (2) of that Act. |
(6) For the purposes of subsection (1)(b)(iii) above, assume—
| (a) | that A will meet the prescribed conditions as to residence under section 71(6) of whichever of the 1992 Acts is applicable, and |
| (b) | that there will be no provision made by regulations under section 72(8) of that Act. |
(7) For the purposes of subsection (3) above, ignore—
| (a) | power to give directions as to the settled property that is exercisable jointly by the persons who between them are entitled to the entire beneficial interest in the property, and |
| (b) | anything that could occur as a result of exercise of any such power. |
(8) In this section "the 1992 Acts" means—
the Social Security Contributions and Benefits Act 1992, and
the Social Security Contributions and Benefits (Northern Ireland) Act 1992.
89B Meaning of "disabled person's interest"
(1) In this Act "disabled person's interest" means—
| (a) | an interest in possession to which a person is under section 89(2) above treated as beneficially entitled, |
| (b) | an interest in possession to which a person is under section 89A(4) above treated as beneficially entitled, |
| (c) | an interest in possession in settled property (other than an interest within paragraph (a) or (b) above) to which a disabled person is beneficially entitled if the settled property was transferred into settlement on or after 22nd March 2006, or |
| (d) | an interest in possession in settled property (other than an interest within paragraph (a) or (b) above) to which a person ("A") is beneficially entitled if— |
| (ii) | A was beneficially entitled to the property immediately before transferring it into settlement, |
| (iii) | A satisfies Her Majesty's Commissioners for Revenue and Customs as mentioned in section 89A(1)(b) above, |
| (iv) | the settled property was transferred into settlement on or after 22nd March 2006, and |
| (v) | the trusts on which the settled property is held secure that, if any of the settled property is applied during A's life for the benefit of a beneficiary, it is applied for the benefit of A. |
(2) Subsections (4) to (6) of section 89 above (meaning of "disabled person" in subsection (1) of that section) have effect for the purposes of subsection (1)(c) above as they have effect for the purposes of subsection (1) of that section.
(3) Section 71D above does not apply to property in which there subsists a disabled person's interest within subsection (1)(c) above (but see also section 71D(5) above)."
|
