Income Tax (Trading and Other Income) Act 2005 section 643

Interpretation of sections 641 and 642

Section 643 provides interpretation rules and definitions for the provisions in sections 641 and 642 dealing with capital sums paid to a settlor by a body corporate connected with a settlement.

• Whether a capital sum has been paid to or by a body corporate is determined using the same tests as section 633 (which deals with capital sums paid to the settlor by trustees)
• An "associated payment" covers any capital sum paid by trustees to the body corporate, or any other sum or asset transferred without full consideration, within the 5 years before or after the capital sum is paid to the settlor
• Where two body corporates are associated (as defined in section 449 of the Corporation Tax Act 2010), a payment made by one or received by one can be treated as made by or received by the other
• The rules for determining whether a body corporate is connected with a settlement are found in section 637(8)