Section 735AE | Settlor liable in place of close family member

(1)If—

(a)a benefit is provided to an individual in a given tax year out of assets which are available for the purpose as a result of—

(i)the relevant transfer, or

(ii)one or more associated operations,

(b)the individual is a close member of the settlor’s family at the time when the benefit is provided,

(c)the individual is non-UK resident, or is a qualifying new resident, for the tax year in which the benefit is provided, and

(d)the settlor is UK resident for that tax year,

the benefit is instead treated for the purposes of section 732 and section 735AD(1) as provided to the settlor.

(2)For the purposes of this section, a person is a “close member of the settlor’s family” at any time if the settlor is living at that time and—

(a)the person is the settlor’s spouse or civil partner at that time, or

(b)the person—

(i)is a child of the settlor, or of a person who at that time is the settlor’s spouse or civil partner, and

(ii)at that time has not reached the age of 18.

(3)For the purposes of subsection (2), two people living together as if they were a married couple or civil partners are treated as if they were spouses or civil partners of each other.

(4)Where any tax for which the settlor is liable as a result of this section is paid, the settlor is entitled to recover the amount of the tax from the individual concerned.

(5)For the purpose of recovering that amount, the settlor is entitled to require an officer of Revenue and Customs to provide the settlor with a certificate specifying—

(a)the tax year in which income was treated as arising to the settlor,

(b)the amount of income treated as arising, and

(c)the amount of tax paid,

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