Section 131 | Charge on settlors of settlements for grandchildren.

(1)In paragraph 2 of Schedule 5 to the Taxation of Chargeable Gains Act 1992 (test whether settlor has interest)—

(a)after sub-paragraph (3)(d) there shall be inserted the following paragraphs—

(da)any grandchild of the settlor or of the settlor’s spouse;

(db)the spouse of any such grandchild;

(b)in sub-paragraph (3)(e), for “(d)" there shall be substituted “ (db) ”.

(2)For sub-paragraph (7) of that paragraph, there shall be substituted the following sub-paragraph—

(7)In this paragraph—

“child” includes a stepchild; and

“grandchild” means a child of a child.

(3)Schedule 22 to this Act (which makes transitional provision and consequential amendments in connection with the provisions of this section) shall have effect.

(4)The preceding provisions of this section and Schedule 22 to this Act apply for the year 1998-99 and subsequent years of assessment and shall be deemed to have applied for the year 1997-98.