Section 470 — Income Tax Act 2007: Transfers between settlements

Transfers between settlements 470 1 Section 471 applies in relation to a transfer of property from the trustees of one settlement (“settlement 1”) to the trustees of another settlement (“settlement 2”) if the transfer—

a is not for full consideration, b is not by way of a bargain made at arm's length, and c is not excluded by subsection (2).

2 A transfer of property is excluded for the purposes of subsection (1) if—

a it occurs only because of the assignment by a beneficiary under settlement 1 of an interest in that settlement to the trustees of settlement 2, b it occurs only because of the exercise of a general power of appointment, or c section 473(4) applies in relation to it.

3 In this section “ transfer of property ” means—

a a disposal of property by the trustees of settlement 1, and b the acquisition by the trustees of settlement 2 of—

i property disposed of by the trustees of settlement 1, or ii property created by the disposal.

4 For the purposes of subsection (3) there is an acquisition or disposal of property if there would be an acquisition or disposal of property for the purposes of TCGA 1992.