C1SCHEDULE 5HIGHER RATES RESIDENTIAL PROPERTY TRANSACTIONS
C1PART 5SUPPLEMENTARY PROVISIONS
Settlements and bare trusts
I1C128
1
Sub-paragraph (3) applies where—
a
a person is a beneficiary under a settlement,
b
a major interest in a dwelling forms part of the trust property, and
c
under the terms of the settlement, the beneficiary is entitled to—
i
occupy the dwelling for life, or
ii
income earned in respect of the dwelling.
2
Sub-paragraph (3) also applies where—
a
a person is a beneficiary under a bare trust (within the meaning given by paragraph 2(1) and (2) of Schedule 8), and
b
a term of years absolute in a dwelling forms part of the trust property.
3
Where this sub-paragraph applies—
a
the beneficiary is to be treated for the purposes of this Schedule as holding the interest in the dwelling, and
b
if the trustee of the settlement or bare trust disposes of the interest, the beneficiary is to be treated for the purposes of this Schedule as having disposed of it.
Sch. 5 applied (with modifications) (1.4.2018) by The Land Transaction Tax (Transitional Provisions) (Wales) Regulations 2018 (S.I. 2018/126), regs. 1(2), 12