PART 2THE TREATMENT OF PARTICIPANTS IN NON-REPORTING FUNDS
CHAPTER 2CHARGES TO TAX ON PARTICIPANTS IN NON-REPORTING FUNDS
Offshore funds and gains of non-resident settlements
Application to gains of non-resident settlements20
1
If an offshore income gain arises to a settlement in a tax year and the trustees of the settlement are neither resident nor ordinarily resident in the United Kingdom in the tax year, the gain is not regarded as income for the purposes of Chapter 5 of Part 5 of ITTOIA 2005 (settlements: amounts treated as income of settlor).
2
If—
a
offshore income gains arise to the trustees of a settlement in a tax year, and
b
section 87 of TCGA 199211 (gains of non-resident settlements) applies to the settlement for that year,
the OIG amount for the settlement for that year is the amount of the offshore income gains.
3
Sections 12, 87 to 90A and 96 to 98 of, and Schedule 4C to, TCGA 199212 apply in relation to OIG amounts as if—
a
references to section 2(2) amounts (except those in paragraph 7B(2)(b) and (4) of Schedule 4C) were to OIG amounts,
b
references to chargeable gains (except the one in paragraph 1(5) of Schedule 4C) were to offshore income gains,
c
references to anything accruing were to it arising (and similar references, except the one in paragraph 1(5) of Schedule 4C, were read accordingly),
d
sections 87(4), 88(2) to (5) and 97(6) and paragraphs 1(3A), 3 to 7 and 12 of Schedule 4C were omitted, and
e
regulation 21 did not apply.
4
Section 87A of TCGA 199213 applies for a tax year by virtue of paragraph (3) before it applies for that year otherwise than by virtue of that paragraph.
5
If this regulation applies, the person to whom the offshore income gain arises is treated as the person making the disposal.