Income Tax Act 2007 section 471

Identification of settlor following transfer covered by section 470

Section 471 identifies who is treated as the settlor of a second settlement when property is transferred between settlements in circumstances covered by section 470.

• When trustees of one settlement transfer property to another settlement, the original settlor (or settlors) of that property are treated as having made the second settlement from the date of the transfer.
• Where there are multiple settlors, each is treated as the settlor of a proportionate share of the property received by the second settlement's trustees.
• If the transferred property was originally provided for the first settlement (or derived from property so provided), it is treated as having been provided for the purposes of the second settlement from the time of the transfer.
• The person who originally provided the property for the first settlement is treated as having provided the transferred property for the second settlement, with proportionate shares applying where there were multiple providers.