Part 2

Income tax, corporation tax and capital gains tax
Chapter 4

Trusts with vulnerable beneficiary

Miscellaneous and supplementary

Application in relation to Scotland
42
1
This Chapter applies in relation to Scotland with the following modifications.
2
In section 23(5), for “trusts on which property is held for the benefit of a vulnerable person are qualifying trusts” substitute “ property held in trust for the benefit of a vulnerable person is held in qualifying trust ”.
3
In section 31(3)(a), for “on the qualifying trusts” substitute “ in qualifying trust (in the same trust as the settled property disposed of) ”.
4
In section 34—
a
in subsection (1), for “those trusts are qualifying trusts if they” substitute “ the property is held in qualifying trust if the trust purposes ”, and
b
in subsection (4), for “on trusts” substitute “ in a trust ”.
5
In section 35—
a
in subsection (1), for “those trusts are qualifying trusts if they are” substitute “ the property is held in qualifying trust if the trust is ”,
b. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c
in subsection (2), before “which” insert “ the purposes of ”.
6
In section 36, for “the trusts on which it is held are qualifying trusts” substitute “ it is held in qualifying trust ”.
7
In section 37—
a
in subsection (1), for paragraph (b) substitute—
b
property held in the trust in relation to which the election is made is held in qualifying trust.
,
b
in subsection (3)(b), for “the trusts in relation to which the election is made are qualifying trusts” substitute “ property held in the trust in relation to which the election is made is held in qualifying trust ”, and
c
in subsection (5), for paragraph (b) substitute—
b
property held in the trust in relation to which the election is made ceases to be held in qualifying trust,
.
8
Sections 34(3) and 35(4) do not apply to Scotland
9
Unless otherwise modified by this section, any reference to anything being held on trusts is to be construed as a reference to it being held in trust.
10
Unless otherwise modified or disapplied by this section, any reference to trusts is to be construed as a reference to a trust or the trust (as appropriate).
S. 42(5)(b) repealed (retrospective to 6.4.2006) by Finance Act 2006 (c. 25), Sch. 13 para. 35(5)(7), Sch. 26 Pt. 3(15)