Section 579F Migrant settlements
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Amendments
Section 579F inserted by Finance Act 1999 section 88(1) as on and from 11 February 1999.
(1) Where a period (in this section referred to as "a non-resident period") of one or more years of assessment for which section 579A applies to a settlement, succeeds a period (in this section referred to as "a resident period") of one or more years of assessment for each of which section 579A does not apply to the settlement, a capital payment received by a beneficiary in the resident period shall be disregarded for the purposes of section 579A if it was not made in anticipation of a disposal made by the trustees in the non-resident period.
When do the migrant settlements rules apply?
(1) This rule applies where a trust is non-resident for a period of two or more tax years (a non-resident period) immediately following a period in which the trust was resident (a resident period) for two or more tax years. In such a case the attribu...
(2) Where-
(a) a non-resident period is succeeded by a resident period, and
(b) the trust gains for the last year of assessment of the non-resident period are not, or not wholly, treated as chargeable gains accruing to beneficiaries, then, subject to subsection (3), those trust gains, or the outstanding part of them, shall be treated as chargeable gains accruing in the first year of assessment of the resident period, to beneficiaries of the settlement who receive capital payments from the trustees in that year of assessment, and so on for the second and subsequent years until the amount treated as accruing to the beneficiaries is equal to the amount of the trust gains for the last year of assessment of the non-resident period.
What if a trust becomes resident after a period of non-residence where trust gains have not been attributed to the beneficiaries?
(2) Where a non-resident period succeeds a resident period, trust gains for the last tax year of the non-resident period which have not been attributed to the beneficiaries are attributed to beneficiaries in the first tax year of the resident period ...
(3) Subsections (5) and (7) of section 579A shall apply in relation to subsection (2) as they apply in relation to subsection (4) of that section.
