Section 735AE | Settlor liable in place of close family member ^F1

(1)If—^F1

(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—^F1

(i)the relevant transfer, or^F1

(ii)one or more associated operations,^F1

(b)the individual is a close member of the settlor’s family at the time when the benefit is provided,^F1

(c)the individual is non-UK resident, or is a qualifying new resident, for the tax year in which the benefit is provided, and^F1

(d)the settlor is UK resident for that tax year,^F1

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—^F1

(a)the person is the settlor’s spouse or civil partner at that time, or^F1

(b)the person—^F1

(i)is a child of the settlor, or of a person who at that time is the settlor’s spouse or civil partner, and^F1

(ii)at that time has not reached the age of 18.^F1

(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.^F1

(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.^F1

(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—^F1

(a)the tax year in which income was treated as arising to the settlor,^F1

(b)the amount of income treated as arising, and^F1

(c)the amount of tax paid,^F1

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