Finance Act, 1999

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“Return of property transfers to non-resident trustees.

917A.—(1) In this section and in sections 917B and 917C ‘appropriate inspector’ shall be construed in accordance with section 950.

(2) This section applies where—

(a) on or after the 11th day of February, 1999, a person (in this section referred to as the ‘transferor’) transfers property to the trustees of a settlement otherwise than under a transaction entered into at arm's length,

(b) the trustees of the settlement are neither resident nor ordinarily resident in the State at the time the property is transferred, and

(c) the transferor knows or has reason to believe, that the trustees are not so resident and ordinarily resident.

(3) Where this section applies, the transferor shall, before the expiry of 3 months beginning with the day on which the transfer is made, deliver to the appropriate inspector a statement which—

(a) identifies the settlement, and

(b) specifies the property transferred, the day on which the transfer was made, and the consideration (if any) for the transfer.

(4) Where a transferor fails—

(a) to make a statement required to be made by the transferor in accordance with subsection (3), or

(b) to include in such a statement the details referred to in subsection (3),

the transferor shall in respect of each such failure be liable to a penalty of £2,000.

(5) Penalties under subsection (4) may, without prejudice to any other method of recovery, be proceeded for and recovered summarily in like manner as in summary proceedings for the recovery of any fine or penalty under any act relating to the excise.”.

“Return by settlor in relation to non-resident trustees.

917B.—(1) In this section and in section 917C ‘arrangements’ means arrangements having the force of law by virtue of section 826 (as extended to capital gains tax by section 828);

(2) This section applies where a settlement is created on or after the 11th day of February, 1999, and at the time it is created—

(a) the trustees are neither resident nor ordinarily resident in the State, or

(b) the trustees are resident and ordinarily resident in the State but fall to be regarded for the purposes of any arrangements as resident in a territory outside the State.

(3) Where this section applies, any person who—

(a) is a settlor in relation to the settlement at the time it is created, and

(b) at that time fulfils the condition mentioned in subsection (4),

shall, before the expiry of the period of 3 months beginning with the day on which the settlement is created, deliver to the appropriate inspector a statement specifying—

(i) the day on which the settlement was created;

(ii) the name and address of the person making the statement; and

(iii) the names and addresses of the persons who are the trustees immediately before the delivery of the statement.

(4) The condition is that the person concerned is domiciled in the State and is either resident or ordinarily resident in the State.

(5) Where a person fails—

(a) to make a statement required to be made by the person in accordance with subsection (2), or

(b) to include in such a statement the details referred to in subsection (2), the person shall in respect of each such failure be liable to a penalty of £2,000.

(6) Penalties under subsection (5) may, without prejudice to any other method of recovery, be proceeded for and recovered summarily in like manner as in summary proceedings for the recovery of any fine or penalty under any act relating to the excise.”.

“Return by certain trustees.

917C.—(1) This section applies where—

(a) the trustees of a settlement become at any time (in this section referred to as ‘the relevant time’) on or after the 11th day of February, 1999, neither resident nor ordinarily resident in the State, or

(b) the trustees of a settlement, while continuing to be resident and ordinarily resident in the State, become at any time (in this section also referred to as ‘the relevant time’) on or after the 11th day of February, 1999, trustees who fall to be regarded for the purposes of any arrangements as resident in a territory outside the State.

(2) Where this section applies, any person who was a trustee of the settlement immediately before the relevant time shall, before the expiry of the period of 3 months beginning with the day when the relevant time falls, deliver to the appropriate inspector a statement specifying—

(a) the day on which the settlement was created,

(b) the name and address of each person who is a settlor in relation to the settlement immediately before the delivery of the statement, and

(c) the names and addresses of the persons who are the trustees immediately before the delivery of the statement.

(3) Where a person fails—

(a) to make a statement required to be made by the person in accordance with subsection (2), or

(b) to include in such a statement the details referred to in subsection (2), the person shall in respect of each such failure be liable to a penalty of £2,000.

(4) Penalties under subsection (3) may, without prejudice to any other method of recovery, be proceeded for and recovered summarily in like manner as in summary proceedings for the recovery of any fine or penalty under any act relating to the excise.”.