Finance Act 1982

99 Close companies

(1) Paragraph 24 of Schedule 5 to the [1975 c. 7.] Finance Act 1975 shall have effect with the following amendments in relation to events after 8th March 1982.

(2) In sub-paragraph (2), for paragraph (b) there shall be substituted—

“(b) if no qualifying interest in possession subsists in the settled property, Chapter II of Part IV of the Finance Act 1982 shall have effect as if on the making of the transfer the trustee had made a disposition as a result of which the value of the settled property had been reduced by an amount equal to the part so apportioned less the amount specified in sub-paragraph (3) below”;

and for the words " an interest in possession " in each place where they occur there shall be substituted the words " a qualifying interest in possession ".

(3) In sub-paragraph (5) for the words from " as " to " beneficially " there shall be substituted the words " and of Chapter II of Part IV of the Finance Act 1982 as being the persons ".

(4) After sub-paragraph (5) there shall be inserted—

“(5A) Where—

(a) the participators mentioned in sub-paragraph (5) above include the trustees of a settlement, and

(b) a person is beneficially entitled to an interest in possession in the whole or part of the settled property by virtue of which the trustees are participators,

that person shall be treated for the said purposes as beneficially entitled to the whole or a corresponding part of the interest to which the trustees would otherwise be treated as entitled under that sub-paragraph.”

(5) In sub-paragraph (6), at the end, there shall be added the words " and "qualifying interest in possession " has the meaning given by section 103 of the Finance Act 1982."