Taxation of Chargeable Gains Act 1992 section 169F

Meaning of "interest in a settlement" in sections 169B to 169D

Section 169F defines when an individual is regarded as having an "interest in a settlement" for the purposes of the rules restricting hold-over relief on gifts to settlor-interested settlements.

• An individual has an interest in a settlement if settlement property (or property derived from it) may benefit the individual, their spouse or civil partner, or if they already enjoy such a benefit
• The interest also arises where settlement property may benefit the individual's dependent child (under 18, unmarried, and without a civil partner), including stepchildren
• Separated spouses or civil partners (whether by court order, separation agreement, or likely permanent separation) and deceased partners are excluded from the definition of spouse or civil partner
• An individual is not treated as having an interest where property can only revert to them on the death of both parties to a marriage or civil partnership settlement and their children, or on the death of a child who became entitled to the property before age 25