118(1)This paragraph applies if—U.K.
(a)section 87 of TCGA 1992 applies to a settlement for the tax year 2008-09 or any subsequent tax year (“the tax year”),
(b)the settlement was made before 17 March 1998,
(c)none of the settlors fulfilled the residence requirements when the settlement was made, and
(d)none of the settlors fulfils the residence requirements in the tax year.
(2)For the purposes of that section as it applies to the settlement for the tax year, no account is to be taken of—
(a)any gains or losses accruing to the trustees of the settlement before 17 March 1998, or
(b)any capital payments received before that date.
(3)A settlor “fulfils the residence requirements” when the settlor is—
(a)resident or ordinarily resident in the United Kingdom, and
(b)domiciled in any part of the United Kingdom.