Part 5

Miscellaneous income
Chapter 5

Settlements: amounts treated as income of settlor or family

Income treated as income of settlor: retained interests

Exception for outright gifts between spouses or civil partners
626
1
The rule in section 624(1) does not apply in respect of an outright gift—
a
of property from which income arises,
b
made by one spouse to the other or one civil partner to the other , and
c
meeting conditions A and B.
2
Condition A is that the gift carries a right to the whole of the income.
3
Condition B is that the property is not wholly or substantially a right to income.
4
A gift is not an outright gift for the purposes of this section if—
a
it is subject to conditions, or
b
there are any circumstances in which the property, or any related property—
i
is payable to the giver,
ii
is applicable for the benefit of the giver, or
iii
will, or may become, so payable or applicable.
5
“Related property” has the same meaning in this section as in section 625.
Words in s. 626(1)(b) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1, 189(2)
Words in s. 626 heading inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1, 189(3)
Words in Pt. 5 Ch. 5 heading inserted (with effect in accordance with Sch. 10 para. 21 of the amending Act) by Finance Act 2018 (c. 3), Sch. 10 para. 3(2)