Taxation of Chargeable Gains Act 1992 Schedule 4A paragraph 7

Condition as to settlor interest in the settlement

Paragraph 7 of Schedule 4A sets out the condition relating to whether a settlement is "settlor-interested" for the purposes of the Schedule 4A anti-avoidance rules, and defines the look-back period during which this connection must have existed.

• A settlement meets the settlor interest condition if, at any time during the relevant period, it was a settlor-interested settlement or held property derived from one.
• The relevant period runs from two years before the start of the relevant tax year up to the date of disposal of the interest in settled property, but cannot begin before 6 April 1999.
• A settlement is "settlor-interested" if the settlor has or had an interest in it at any time during the relevant period, as determined by the rules in section 169F(2) to (6).
• The settlor interest condition is treated as not met in a tax year if the settlor dies, or if the connection arose solely through a spouse, civil partner, or dependent child and that relationship ends during the year.