Section 512 — Income Tax Act 2007: Charge to tax on some settlements

Charge to tax on some settlements 512 1 Income tax is charged in respect of a heritage maintenance settlement on any of the occasions described in cases A to D, subject to sections 516 and 517.

2 Case A is where any of the property comprised in the settlement (whether capital or income) is applied otherwise than—

a for a property maintenance purpose, or b as respects income not so applied and not accumulated, for the benefit of a heritage body.

3 Case B is where any of that property, on ceasing to be comprised in the settlement, devolves otherwise than on a heritage body.

4 Case C is where the heritage direction ceases to have effect in respect of the settlement.

5 Case D is where any of the property comprised in the settlement, on ceasing at any time to be comprised in the settlement—

a devolves on a heritage body, and b at or before that time an interest under the settlement is or has been acquired for a consideration in money or money's worth by that or another such body.

6 For the purposes of subsection (5)(b) any acquisition from another such body is to be ignored.