Section 68B | Transfer between settlements: identification of settlor ^F1

(1)This section applies in relation to a transfer of property from the trustees of one settlement (“Settlement 1”) to the trustees of another (“Settlement 2”) otherwise than—^F1

(a)for full consideration, or^F1

(b)by way of a bargain made at arm's length.^F1

(2)In this section “transfer of property” means—^F1

(a)a disposal of property by the trustees of Settlement 1, and^F1

(b)the acquisition by the trustees of Settlement 2 of—^F1

(i)property disposed of by the trustees of Settlement 1, or^F1

(ii)property created by the disposal;^F1

and a reference to transferred property is a reference to property acquired by the trustees of Settlement 2 on the disposal.

(3)For the purposes of this Act, except where the context otherwise requires—^F1

(a)the settlor (or each settlor) of the property disposed of by the trustees of Settlement 1 shall be treated from the time of the disposal as having made Settlement 2, and^F1

(b)if there is more than one settlor of the property disposed of by the trustees of Settlement 1, each settlor shall be treated in relation to Settlement 2 as the settlor of a proportionate part of the transferred property.^F1

(4)For the purposes of this Act, except where the context otherwise requires, if and to the extent that the property disposed of by the trustees of Settlement 1 was provided for the purposes of Settlement 1, or is derived from property provided for the purposes of Settlement 1, the transferred property shall be treated from the time of the disposal as having been provided for the purposes of Settlement 2.^F1

(5)If transferred property is treated by virtue of subsection (4) as having been provided for the purposes of Settlement 2 —^F1

(a)the person who provided the property disposed of by the trustees of Settlement 1, or property from which it was derived, for the purposes of Settlement 1 shall be treated as having provided the transferred property, and^F1

(b)if more than one person provided the property disposed of by the trustees of Settlement 1, or property from which it was derived, for the purposes of Settlement 1, each of them shall be treated as having provided a proportionate part of the transferred property.^F1

(6)But subsections (3) and (4) do not apply in relation to a transfer of property—^F1

(a)which occurs by reason only of the assignment or assignation by a beneficiary under Settlement 1 of an interest in that settlement to the trustees of Settlement 2,^F1

(b)which occurs by reason only of the exercise of a general power of appointment, or^F1

(c)to which section 68C(6) applies.^F1

(7)In determining whether this section applies in relation to a transfer of property between settlements, section 18(2) shall be disregarded.^F1