174 Premiums trust funds.U.K.
(1)A member shall be treated for the purposes of the Income Tax Acts and the Gains Tax Acts as absolutely entitled as against the trustees to the assets forming part of a premiums trust fund of his.
(2)Where an asset forms part of a premiums trust fund at the beginning of any underwriting year, for the purposes of the Income Tax Acts—
(a)the trustees of the fund shall be treated as acquiring it on that day, and
(b)they shall be treated as paying in respect of the acquisition an amount equal to the value of the asset at the time of the acquisition.
(3)Where an asset forms part of a premiums trust fund at the end of any underwriting year, for the purposes of the Income Tax Acts—
(a)the trustees of the fund shall be treated as disposing of it on that day, and
(b)they shall be treated as obtaining in respect of the disposal an amount equal to the value of the asset at the time of the disposal.
(4)Subsection (5) below applies where the following state of affairs exists at the beginning of any underwriting year or the end of any such year—
(a)securities have been transferred by the trustees of a premiums trust fund in pursuance of an arrangement mentioned in section 129(1), (2) or (2A) of the Taxes Act 1988,
(b)the transfer was made to enable another person to fulfil a contract or to make a transfer,
(c)securities have not been transferred in return, and
(d)section 129(3) of that Act applies to the transfer made by the trustees.
(5)The securities transferred by the trustees shall be treated for the purposes of subsections (2) and (3) above as if they formed part of the premiums trust fund at the beginning or (as the case may be) the end of the underwriting year concerned.
(6)Subsections (2) to (5) above do not apply to FOTRA securities forming part of a member’s premiums trust fund at the beginning or end of any underwriting year if—
(a)the member is not domiciled in the United Kingdom at any time in the year, and
(b)he is either not ordinarily resident in the United Kingdom during the year or a non-resident United Kingdom trader in the year.
(7)In this section—
“FOTRA securities” has the same meaning as in section 715 of the Taxes Act 1988 (exceptions from accrued income scheme);
“non-resident United Kingdom trader” shall be construed in accordance with subsection (5) of that section;
“underwriting year” does not include the year 1993 or any earlier underwriting year.