Taxation of Chargeable Gains Act 1992 Schedule 5 paragraph 8

Meaning of "originating"

Schedule 5 paragraph 8 defines what it means for property or income to "originate" from a person, which is central to determining whether a settlor has an interest in a non-resident or dual-resident settlement for the purposes of section 86.

• Property originates from a person if it was provided by them (directly or indirectly), or if it represents or derives from property they provided, including accumulated income on that property.
• Income originates from a person if it arises from property originating from them or if the income itself was provided by them; and where a settlor enters into reciprocal arrangements with another person, property or income provided by that other person is treated as provided by the settlor.
• Where property is transferred to a settlement by a close company (or a company that would be close if UK-resident), the person or persons who control the company are treated as having provided the property, with specific apportionment rules depending on whether control is held by one person, by two or more persons individually, or by two or more persons jointly.
• A person whose share of property attributed through joint control of a company would be less than one-twentieth is disregarded, and a person is not treated as a participator in a company controlled by settlement trustees merely because of an interest under the settlement itself.