Capital Transfer Tax Act 1984

201 Settled property

(1) The persons liable for the tax on the value transferred by a chargeable transfer made under Part III of this Act are—

(a) the trustees of the settlement;

(b) any person entitled (whether beneficially or not) to an interest in possession in the settled property;

(c) any person for whose benefit any of the settled property or income from it is applied at or after the time of the transfer;

(d) where the transfer is made during the life of the settler and the trustees are not for the time being resident in the United Kingdom, the settlor.

(2) Where the chargeable transfer is made within three years of the transferor's death, subsection (1)(d) above shall not apply in relation to so much of the tax as exceeds what it would have been had the transferor died more than three years after the transfer.

(3) Subsection (1)(d) above shall not apply in relation to a settlement made before 11th December 1974 if the trustees were resident in the United Kingdom when the settlement was made, but have not been resident there at any time during the period between 10th December 1974 and the time of the transfer.

(4) Where more than one person is a settlor in relation to a settlement and the circumstances so require, subsection (1)(d) above shall have effect in relation to it as if the settled property were comprised in separate settlements.

(5) For the purposes of this section trustees of a settlement shall be regarded as not resident in the United Kingdom unless the general administration of the settlement is ordinarily carried on in the United Kingdom and the trustees or a majority of them (and, where there is more than one class of trustees, a majority of each class) are for the time being resident in the United Kingdom.

(6) References in this section to any property include references to any property directly or indirectly representing it.