Section 236LA — Taxation of Chargeable Gains Act 1992: Trustee independence requirement

Trustee independence requirement 236LA 1 A settlement meets the trustee independence requirement if—

a less than 50% of the trustees are persons who are excluded participators, and b excluded participators do not have control of the settlement.

2 In this section “ excluded participator ” means—

a a person that is an excluded participator within the meaning given by section 236J, other than a person who is an excluded participator only as a result of a connection falling within section 286(3) (trustees regarded as connected with settlors etc), or b a company not falling within paragraph (a) , if 50% or more of its directors are persons falling within that paragraph.

3 Excluded participators have control of the settlement if one or more excluded participators, acting alone or together without the trustees who are not excluded participators, have power under the trust instrument or by law to—

a dispose of, advance, lend, invest, pay or apply settlement property;

b vary or terminate the settlement;

c add or remove a person as a beneficiary or to or from a class of beneficiaries;

d appoint or remove trustees or give another individual control over the settlement;

e direct the exercise of a power mentioned in sub-paragraphs (a) to (d).