Commentary

I5.1146 Conditions for charge on onward gifts to apply

IHT, trusts and estates

I5.1146 Conditions for charge on onward gifts to apply

Onward gifts of benefits provided out of protected foreign-source income

I5.1146 Conditions for charge on onward gifts to apply

Without preventative measures it would have been possible to avoid the charge at I5.1141 by providing benefits to individuals outside the scope of those provisions, who would subsequently make an onward gift to the settlor or a close family member of the settlor. Thus there are provisions aimed at preventing this by taxing onward gifts; these provisions have effect in relation to onward gifts made on or after 6 April 20181.

The provisions apply where:

  1.  

    (a)     an amount is treated under I5.1141 as income of an individual (the 'original beneficiary') for a tax year (Year Z) but is not taxed. This could be because:

    1.  

      •     the original beneficiary is non-UK resident or is chargeable on the

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial