|
|
Amendment of section 579A (attribution of gains to beneficiaries) of Principal Act.
|
47.—(1) Section 579A of the Principal Act is amended—
|
|
| |
(a) by substituting the following for subsection (2):
|
|
| |
“(2) (a) This section shall apply to a settlement for any year of assessment (beginning on or after 6 April 1999) during which the trustees are at no time resident or ordinarily resident in the State, and—
|
|
| |
(i) the settlor does not have an interest in the settlement at any time in that year of assessment, or
|
|
| |
(ii) the settlor does have an interest in the settlement but—
|
|
| |
(I) was not domiciled in the State, and
|
|
| |
(II) was neither resident nor ordinarily resident in the State,
|
|
| |
in that year of assessment, or when the settlor made the settlement.
|
|
| |
(b) Section 579 shall not apply as respects chargeable gains accruing after 5 April 1999 to trustees of a settlement to which this section applies; and references in subsections (4) and (5) to capital payments received by beneficiaries do not include references to any payments received before 11 February 1999 or any payments received on or after that date so far as they represent a chargeable gain which accrued to the trustees in respect of a disposal by the trustees before 11 February 1999.
|
|
| |
(c) For the purposes of this subsection a settlor has an interest in a settlement if—
|
|
| |
(i) any relevant property which is, or may at any time become, comprised in the settlement is, or will or may become, applicable for the benefit of or payable in any circumstances to, a relevant beneficiary,
|
|
| |
(ii) any relevant income which arises, or may arise, under the settlement is, or will or may become, applicable for the benefit of or payable in any circumstances to, a relevant beneficiary, or
|
|
| |
(iii) a relevant beneficiary enjoys a benefit directly or indirectly from any relevant property which is comprised in the settlement or any relevant income arising under the settlement.
|
|
| |
(d) In this subsection—
|
|
| |
‘relevant beneficiary’ means—
|
|
| |
(i) the settlor,
|
|
| |
(ii) the spouse of the settlor,
|
|
| |
(iii) a company controlled by either or both the settlor and the spouse of the settlor, or
|
|
| |
(iv) a company associated with a company referred to in paragraph (iii) of this definition;
|
|
| |
‘relevant income’ means income originating from the settlor;
|
|
| |
‘relevant property’ means property originating from the settlor.
|
|
| |
(e) For the purposes of this subsection—
|
|
| |
(i) references to property originating from a person are references to property provided by that person, and property representing that property,
|
|
| |
(ii) references to income originating from a person are references to income from property originating from that person and income provided by that person,
|
|
| |
(iii) whether a company is controlled by a person or persons shall be construed in accordance with section 432 without regard to subsection (6) of that section,
|
|
| |
(iv) whether a company is associated with another company shall be construed in accordance with section 432 without regard to subsection (6) of that section, and
|
|
| |
(v) references to relevant property comprised in a settlement being, or becoming, applicable for the benefit of or payable in any circumstances to, a relevant beneficiary, do not include references to the repayment of, or obligation to repay, a loan to a settlor which loan was provided by the settlor to the trustees of the settlement on terms that it would be repaid.
|
|
| |
(f) Where, for the year of assessment 2002 or any subsequent year of assessment, chargeable gains are treated as accruing to a beneficiary under a settlement by virtue of section 579, then notwithstanding that section such chargeable gains, in so far as they are in respect of a disposal made on or after 7 March 2002 by the trustees of the settlement, shall be treated as accruing to the settlor in relation to the settlement and not to any other person, if the settlor is resident or ordinarily resident in the State, whether or not the settlor is the beneficiary.”,
|
|
| |
and
|
|
| |
(b) by deleting subsections (10) and (11).
|
|
| |
(2) Subsection (1) is deemed to have applied as on and from 11 February 1999.
|
