Section 87D | Sections 87 and 87A: disregard of capital payments to non-residents ^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), but this—

(a)is subject to subsection (3) and section 87E, ...^F2

(b)Repealed^F2

(2)A capital payment is within this subsection if (and to the extent that) it is in a tax year received from the trustees of the settlement by a beneficiary who at all times in that year is not resident in the United Kingdom, but this is subject to section 87F.

(3)Subsection (1) does not apply in relation to a capital payment (or a part of a capital payment) if—

(a)the recipient beneficiary is a close member of the settlor's family (see section 87H) when the beneficiary receives (or is treated as receiving) the payment (or part),

(b)the payment (or part) is received on or after 6 April 2018, and

(c)the settlor is resident in the United Kingdom in the tax year in which the payment (or part) is received.