Part 4Savings and investment income
Chapter 9Gains from contracts for life insurance etc.
Person liable etc.
467Person liable: UK resident trustees
(1)
Trustees are liable for tax under this Chapter if immediately before the chargeable event in question occurs they are UK resident and condition A, B, C or D is met.
F1(1A)
If trustees are liable for tax under this Chapter, the gain is treated for income tax purposes as income of the trustees.
(2)
Condition A is that the rights under the policy or contract are held by the trustees on charitable trusts.
(3)
Condition B is that—
(a)
those rights are held by the trustees on non-charitable trusts, and
(b)
one or more of the absent settlor conditions is met.
(4)
The absent settlor conditions are that the person who created the trusts—
(a)
is non-UK resident,
F2(aa)
is UK resident but the gain arises in the overseas part of a tax year that is, as respects the person who created the trusts, a split year,
(b)
has died, or
(c)
in the case of a company or foreign institution (see section 468(5)), has been dissolved or wound up or has otherwise come to an end.
(5)
Condition C is that—
(a)
the rights under the policy or contract are held by the trustees on non-charitable trusts,
(b)
condition B does not apply, and
F3(c)
neither section 465 nor section 466 applies.
(6)
Condition D is that the rights under the policy or contract are held as security for a debt owed by the trustees.
F4(7)
If trustees are liable for tax under this Chapter, it is charged at the F5basic rate if—
(a)
condition A is met, or
(b)
condition D is met and the trustees are trustees of a charitable trust.