Income Tax Act 2007 section 476

How to work out whether settlor meets condition C

Section 476 sets out how to determine whether a settlor meets condition C in relation to a settlement, based on the settlor's UK residence or domicile status at the relevant time.

• If a settlement arose on the settlor's death and the settlor was UK resident immediately before death, condition C is met from the date of death until the person ceases to be a settlor in relation to that settlement.
• For settlements not arising on death, condition C is met if the settlor was UK resident at the time they made (or are treated as having made) the settlement, and continues to be met until they cease to be a settlor.
• For settlements arising or made before 6 April 2025, the test is extended so that condition C is also met if the settlor was domiciled (or deemed domiciled) in the United Kingdom at the relevant time, even if not UK resident.
• Where property is transferred between settlements under section 471 and the settlor met condition C in relation to the first settlement immediately before the transfer, condition C carries over to the second settlement for as long as the person remains a settlor of that second settlement.