Attribution of gains: disregard of certain capital payments

9

1

For the purposes of paragraph 8 (and section 87A as it applies for the purposes of that paragraph), no account is to be taken of a capital payment to which any of sub-paragraphs (2) to (4) applies (or a part of a capital payment to which sub-paragraph (4) applies).

2

This sub-paragraph applies to a capital payment received before the tax year preceding the tax year in which the original transfer is made.

3

This sub-paragraph applies to a capital payment that—

a

is received by a beneficiary of a settlement from the trustees in a tax year during the whole of which the trustees—

i

are resident and ordinarily resident in the United Kingdom, and

ii

are not Treaty non-resident,

b

was made before any transfer of value to which Schedule 4B applies was made, and

c

was not made in anticipation of the making of any such transfer of value or of chargeable gains accruing under that Schedule.

4

This sub-paragraph applies to a capital payment if (and to the extent that) it is received (or treated as received) in a tax year from the trustees by a company that—

a

is not resident in the United Kingdom in that year, and

b

would be a close company if it were resident in the United Kingdom,

(and is not treated under any of subsections (3) to (5) of section 96 as received by another person).