Commentary

I5.1139 Capital sums paid by a company connected with the settlement

IHT, trusts and estates

I5.1139 Capital sums paid by a company connected with the settlement

I5.1139 Capital sums paid by a company connected with the settlement

A company is connected with a settlement in any tax year in which at any time:

  1.  

    (a)     it is a close company (or would be if resident in the UK) and the participators include the trustees of the settlement, or

  2.  

    (b)     it is controlled by a company within (a)1

Where a capital sum is paid to a settlor by a company connected with his settlement, and the trustees have made an associated payment to the company, the payment by the company is deemed to have been made by the trustees2.

An

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