Section 87G | Settlor liable if capital payment received by close family member ^F1

(1)Subsection (2) applies if in the case of a settlement—^F1

(a)a beneficiary of the settlement receives a capital payment from the trustees in a tax year,^F1

(b)the settlor is resident in the United Kingdom for that tax year, and^F1F2

(c)the beneficiary (“the original recipient”) is a close member of the settlor's family (see section 87H) at the time of receipt.^F1

(2)Sections 87 and 87A have effect as if the capital payment—^F1

(a)was received from the trustees by the settlor—^F1

(i)as a beneficiary of the settlement (whether or not the settlor is otherwise a beneficiary of the settlement), and^F1

(ii)at the time it was received by the original recipient, and^F1

(b)was not received by the original recipient.^F1

(2A)But subsection (2) does not apply if—^F1F3

(a)the original recipient is resident in the United Kingdom for the tax year in which they receive the capital payment, and^F1F3

(b)the settlor is a qualifying new resident for that tax year.^F1F3

(3)Where any tax is chargeable on the settlor as a result of subsection (2) and is paid, the settlor is entitled to recover the full amount of the tax from the original recipient.^F1

(4)For the purpose of recovering that amount, the settlor is entitled to require an officer of Revenue and Customs to give the settlor a certificate specifying—^F1

(a)the amount of tax paid, ...^F1F4

(b)the amount of the gains on which the tax is paid, and^F1F5

(c)the tax year in which those gains were treated as arising,^F1F5

and any such certificate is conclusive evidence of the facts stated in it.