Separate settlements: form of the transaction: pre- existing settlement
For the reasons given in CG37812, if property is transferred to a settlement which hasbeen separately created by the original settlor, as in Hart v Briscoe, or one of thebeneficiaries, even though this was set up specifically to receive property from theoriginal settlement, it must be a disposal to the trustees of a separate settlement andtherefore within TCGA92/S71 (1). This is so even if the trusts are not exhaustive. Thesame clearly applies if the receiving settlement is not newly formed. It is howeverdifferent if it is a new settlement created by the trustees of the old settlement underthe powers given to them in that settlement. In such circumstances the principles whichfollow apply.