|
|
Transfer of interests in trade to children.
|
448.—(1) Where by any means whatsoever (including indirect means or means consisting of a series of operations and whether adopted before or after the passing of this Act), a trade, which at any time before the adoption of such means was carried on by any person solely or in partnership, becomes a trade carried on by one or more than one child of such person or by way of a partnership in which such person and one or more than one child of such person are partners, the following provisions shall have effect:
|
|
| |
(a) such means shall, for the purposes of this Chapter, be deemed to constitute a settlement as respects which such person shall be deemed to be the settlor,
|
|
| |
(b) the profits or gains arising from the trade after the adoption of such means, in so far as they arise to (as the case may be) one or more than one child of such person or such person and one or more than one child of such person, shall for the purposes of this Chapter, be deemed to be the same income as would have arisen to such person had such means not been adopted, and
|
|
| |
(c) “income” where it first occurs in section 443 shall be deemed to include the said profits or gains in so far as they arise to one or more than one child of such person.
|
|
| |
(2) In subsection (1), the word “child” includes a stepchild, an adopted child, and an illegitimate child.
|
|
| |
(3) The amount of the income of a person from the profits or gains of a trade which is to be deemed by virtue of subsection (1) to be income of another person shall, if the first-mentioned person is engaged actively in the carrying on of the trade, be the full amount of the said income reduced by a sum (in subsection (4) referred to as the appropriate sum) equal to the amount which would have been allowed in computing the said profits or gains in respect of the first-mentioned person if he, instead of being a person engaged in the carrying on of the trade, had been a person employed by a person or persons carrying on the trade.
|
|
| |
(4) The appropriate sum shall be deemed to be profits or gains arising to the first-mentioned person referred to in subsection (3) from the exercise of an office or employment within the meaning of Schedule E.
|
