Part 9

Special rules about settlements and trustees
Chapter 2

General provision about settlements and trustees

Settlors

Meaning of “settlor” etc
467
1
In the Income Tax Acts (except where the context otherwise requires) “settlor”, in relation to a settlement, means the person, or any of the persons, who has made the settlement.
2
In the Income Tax Acts (except where the context otherwise requires) a person is a settlor of property if—
a
the property is settled property because of—
i
the person's having made the settlement, or
ii
an event which leads to the person being treated by this Chapter as having made the settlement, or
b
the property derives from settled property within paragraph (a).
3
A person (“S”) is treated for the purposes of the Income Tax Acts as having made a settlement if—
a
S has made or entered into the settlement (directly or indirectly), or
b
the settled property, or property from which the settled property derives, is or includes property within subsection (4).
4
Property is within this subsection if—
a
the settlement arose on S's death (whether by S's will, on S's intestacy or in any other way), and
b
immediately before S's death, the property was property of S—
i
which was disposable property (see section 468), or
ii
which represented S's severable share in any property to which S was beneficially entitled as joint tenant.
5
In particular, S is treated for the purposes of the Income Tax Acts as having made a settlement if—
a
S has provided property for the purposes of the settlement (directly or indirectly), or
b
S has undertaken to do that.
6
If a person (“A”) makes or enters into a settlement in accordance with reciprocal arrangements with another person (“B”)—
a
B is treated for the purposes of the Income Tax Acts as having made the settlement, and
b
A is not to be treated for the purposes of the Income Tax Acts as having made the settlement just because of the reciprocal arrangements.
7
This section needs to be read with sections 469 to 473.
8
This section and sections 469 to 473 do not apply for the purposes of Chapter 5 of Part 5 of ITTOIA 2005 (amounts treated as income of settlors).
Pt. 9 Ch. 2 applied (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 1169(1), 1184(1) (with Sch. 2)