Part 9

Special rules about settlements and trustees
Chapter 2

General provision about settlements and trustees

Settlors

Transfers between settlements
470
1
Section 471 applies in relation to a transfer of property from the trustees of one settlement (“settlement 1”) to the trustees of another settlement (“settlement 2”) if the transfer—
a
is not for full consideration,
b
is not by way of a bargain made at arm's length, and
c
is not excluded by subsection (2).
2
A transfer of property is excluded for the purposes of subsection (1) if—
a
it occurs only because of the assignment by a beneficiary under settlement 1 of an interest in that settlement to the trustees of settlement 2,
b
it occurs only because of the exercise of a general power of appointment, or
c
section 473(4) applies in relation to it.
3
In this section “transfer of property” means—
a
a disposal of property by the trustees of settlement 1, and
b
the acquisition by the trustees of settlement 2 of—
i
property disposed of by the trustees of settlement 1, or
ii
property created by the disposal.
4
For the purposes of subsection (3) there is an acquisition or disposal of property if there would be an acquisition or disposal of property for the purposes of TCGA 1992.
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)