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Qualifying settlements

The rules that attribute the gains of non-resident settlements to the settlor (see I5.1225) only apply to 'qualifying' settlements¹.

From 6 April 2009 all non-resident settlements are qualifying settlements unless they are 'protected' settlements² (see below).

A settlement is a qualifying settlement if the settlor has an interest in the settlement (see I5.1226), ie the trust property originated from him (see I5.1227) and is, or potentially can be, applied for the benefit of a 'defined person' either directly or indirectly.

The definition of a 'defined person' here is the same used for determining whether a settlor has an interest in the settlement (see I5.1226), and includes³:

1. Ìý

   •ÌýÌýÌýÌý the settlor

2. Ìý

   •ÌýÌýÌýÌý the settlor's spouse or civil partner

3. Ìý

   •ÌýÌýÌýÌý any child (of any age) of the settlor or the settlor's spouse or civil partner

4. Ìý

   •ÌýÌýÌýÌý any spouse or civil partner of any such child

5. Ìý

   •ÌýÌýÌýÌý any grandchild (of any age) of the settlor or the settlor's spouse or civil partner

6. Ìý

   •