Gifts: Finance Act 2004 changes: gifts to settlor-interested settlements: donee becomes settlor-interested settlement before hold-over relief is obtained
Subject to certain exceptions, a claim for hold-over relief under TCGA92/S165 in relation to a “relevant disposal” (see CG66921C) which is made after the “material time” (see CG66921C) is not a valid claim if the relevant disposal is to the trustees of a settlement where, within the “clawback period” (see CG66921C)
- the settlement becomes a “settlor-interested settlement” (see CG66921A), or
- an “arrangement” (see CG66921A) comes into existence under which the settlement will or may become a “settlor-interested settlement”.
[TCGA92/S169C (1), (2) and (4)]
The exceptions to this general rule are explained in CG66924.
Officers of the Board are given powers to obtain information for the purposes of TCGA92/S169B to TCGA92/S169F. Penalty proceedings under TMA70/S98 can be taken against someone who fails to produce this information (see CG66925).