SCHEDULES

SCHEDULE 14 Life policies, life annuities and capital redemption policies

Consequential amendments

5

In section 7(9) of the M1Taxes Management Act 1970 (meaning of “relevant trustees” for the purposes of that Act)—

(a)

in paragraph (a), after “in relation to income" there shall be inserted “ (other than gains treated as arising under Chapter II of Part XIII of the principal Act) ”; and

(b)

after paragraph (a) there shall be inserted—

“(aa)

in relation to gains treated as arising under Chapter II of Part XIII of the principal Act, the persons who are trustees in the year of assessment in which the gains arise and any persons who subsequently become trustees; and”.

6

In section 151 of the M2Finance Act 1989 (assessment of trustees etc) for subsection (2) (definition of “the relevant trustees") there shall be substituted—

“(2)

In this section “the relevant trustees”—

(a)

in relation to any income, other than gains treated as arising under Chapter II of Part XIII of the Taxes Act 1988, means the trustees to whom the income arises and any subsequent trustees of the settlement; and

(b)

in relation to gains treated as arising under Chapter II of Part XIII of the Taxes Act 1988, means the trustees in the year of assessment in which the gains arise and any subsequent trustees of the settlement;

and “the relevant personal representatives” has a corresponding meaning.”