SCHEDULES

SCHEDULE 7Remittance basis

Part 2Non-resident companies and trusts etc

Attribution of gains to beneficiaries: cases involving transfers of value

130

In paragraph 3 of Schedule 4B (transfers of value by trustees linked with trustee borrowing: settlements), for sub-paragraph (4) substitute—

4

A settlement is “within section 87” for a tax year if—

a

section 87 applies to the settlement for that year, or

b

chargeable gains would be treated under section 89(2) as accruing in that year to a beneficiary who received a capital payment from the trustees of the settlement in that year.

5

The reference in subsection (4)(b) to chargeable gains treated as accruing includes offshore income gains treated as arising.