Section 169B — Taxation of Chargeable Gains Act 1992: Gifts to settlor-interested settlements etc

Gifts to settlor-interested settlements etc 169B 1 Neither section 165(4) nor section 260(3) shall apply in relation to a disposal (“the relevant disposal”)—

a made by a person (“ the transferor ”) to the trustees of a settlement, and b in respect of which Condition 1 or Condition 2 below is satisfied.

2 Condition 1 is that, immediately after the making of the relevant disposal,—

a there is a settlor (see section 169E) who has an interest in the settlement (see section 169F), or b an arrangement (see section 169G) subsists under which such an interest will or may be acquired by a settlor.

3 Condition 2 is that—

a a chargeable gain would (assuming that neither section 165(4) nor section 260(3) applied in relation to the relevant disposal) accrue to the transferor on that disposal, b in computing the gain, the allowable expenditure would to any extent fall to be reduced in consequence, directly or indirectly, of a claim under section 165 or 260 in respect of an earlier disposal made by an individual (whether or not to the transferor),

and c immediately after the making of the relevant disposal,—

i that individual has an interest in the settlement, or ii an arrangement subsists under which such an interest will or may be acquired by him.

4 This section is subject to section 169D (exception for maintenance funds for historic buildings and certain settlements for disabled persons).