Section 87C | Sections 87 and 87A: disregard of certain capital payments ^F1

(1)For the purposes of sections 87 and 87A as they apply in relation to a settlement, no account is to be taken of a capital payment (or a part of a capital payment) within subsection (2).^F1

(2)A capital payment is within this subsection if (and to the extent that) it is received (or treated as received) in a tax year from the trustees of the settlement by a company that—^F1

(a)is not resident in the United Kingdom in that year, and^F1

(b)would be a close company if it were resident in the United Kingdom,^F1

(and is not treated under any of subsections (3) to (5) of section 96 as received by another person).