Section 476 — Income Tax Act 2007: How to work out whether settlor meets condition C

How to work out whether settlor meets condition C 476 1 This section applies for the purpose of working out whether a settlor (“S”) in relation to a settlement meets condition C at a time.

2 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, S was UK resident ... ..., then S meets condition C from the time of S's death until S ceases to be a settlor in relation to the settlement.

3 If—

a the settlement is not within subsection (2)(a),

and b at a time when S made the settlement (or is treated for the purposes of the Income Tax Acts as making the settlement), S was UK resident ... ..., then S meets condition C from that time until S ceases to be a settlor in relation to the settlement. 3ZA In relation to a settlement—

a that arose before 6 April 2025 on S’s death, or b that S made (or is treated for the purposes of the Income Tax Acts as having made) before 6 April 2025, subsections (2)(b) and (3)(b) have effect as if after “UK resident” there were inserted “or domiciled in the United Kingdom” . 3A Section 835BA (deemed domicile) applies for the purposes of subsection (3ZA) .

4 Further, if—

a there is a transfer of property in relation to which section 471 applies, b S is a settlor in relation to settlement 2 as a result of that section, and c immediately before the disposal by the trustees of settlement 1, S meets condition C as a settlor in relation to settlement 1 as a result of this section , then S meets condition C as a settlor in relation to settlement 2 from the time S becomes such a settlor until S ceases to be such a settlor. 5 “Settlement 1” and “settlement 2” are to be read in accordance with section 470(1).