Section 467 — Income Tax Act 2007: Meaning of “settlor” etc

Meaning of “settlor” etc 467 1 In the Income Tax Acts (except where the context otherwise requires) “ settlor ”, in relation to a settlement, means the person, or any of the persons, who has made the settlement.

2 In the Income Tax Acts (except where the context otherwise requires) a person is a settlor of property if—

a the property is settled property because of—

i the person's having made the settlement, or ii an event which leads to the person being treated by this Chapter as having made the settlement, or b the property derives from settled property within paragraph (a).

3 A person (“S”) is treated for the purposes of the Income Tax Acts as having made a settlement if—

a S has made or entered into the settlement (directly or indirectly), or b the settled property, or property from which the settled property derives, is or includes property within subsection (4).

4 Property is within this subsection if—

a the settlement arose on S's death (whether by S's will, on S's intestacy or in any other way),

and b immediately before S's death, the property was property of S—

i which was disposable property (see section 468), or ii which represented S's severable share in any property to which S was beneficially entitled as joint tenant.

5 In particular, S is treated for the purposes of the Income Tax Acts as having made a settlement if—

a S has provided property for the purposes of the settlement (directly or indirectly), or b S has undertaken to do that.

6 If a person (“A”) makes or enters into a settlement in accordance with reciprocal arrangements with another person (“B”)—

a B is treated for the purposes of the Income Tax Acts as having made the settlement, and b A is not to be treated for the purposes of the Income Tax Acts as having made the settlement just because of the reciprocal arrangements.

7 This section needs to be read with sections 469 to 473.

8 This section and sections 469 to 473 do not apply for the purposes of Chapter 5 of Part 5 of ITTOIA 2005 (amounts treated as income of settlors).