Taxation of Chargeable Gains Act 1992 Schedule 4C paragraph 8A

Relevant settlements

Section 8A of Schedule 4C defines which settlements are treated as "relevant settlements" in relation to a Schedule 4C pool, which matters because chargeable gains can accrue to beneficiaries who receive capital payments from any relevant settlement linked to that pool.

• Both the transferor settlement and the transferee settlement involved in the original transfer of value are relevant settlements in relation to the resulting Schedule 4C pool.
• If trustees of any relevant settlement subsequently make a further transfer of value (under Schedule 4B) or a transfer of settled property (under section 90), any transferee settlement receiving that later transfer also becomes a relevant settlement in relation to the original pool.
• If trustees of a relevant settlement make a further transfer of value under Schedule 4B, every other settlement that is already a relevant settlement in relation to the original pool also becomes a relevant settlement in relation to the new Schedule 4C pool created by that further transfer.
• The effect is that the network of relevant settlements expands both forwards (new transferee settlements join the original pool) and sideways (existing relevant settlements are drawn into any new pool created by a further transfer from within the group).