Section 735AA | Settlements to which following sections apply

(1)Sections 735AB to 735C apply if—

(a)a relevant transfer occurred before 6 April 2025,

(b)the person abroad was—

(i)the trustees of a settlement, or

(ii)a company in which the trustees of a settlement were participators or indirect participators, and

(c)protected foreign-source income or transitionally protected income arose in relation to the transfer.

(2)In sections 735AB to 735C—

“the relevant transfer” means the transfer referred to in subsection (1)(a);

“the settlement” means the settlement referred to in subsection (1)(b)(i) or (ii) (as the case may be);

“the settlor” means the settlor of that settlement.

(3)For the purposes of subsection (1)(b)(ii), the trustees of a settlement are “indirect participators” in a company if they are participators in the first in a chain of two or more companies where the last company in the chain is the person abroad and where each company in the chain (except the last) is a participator in the next company in the chain.