Introductory provisions

FC 1 Disposals to which this subpart applies
Types of distributions and gifts

(1)

This subpart provides a value for property that is disposed of under the transactions referred to in section FC 10 and under transactions that are—

(a)

the transfer of a person’s estate to an executor or administrator on the death of the person:

(b)

the transfer of property on a distribution by an executor, administrator, or trustee of a deceased person’s estate to a beneficiary who is beneficially entitled to receive the property under the will or the rules governing intestacy:

(c)

the transfer of property on a distribution by a trustee of a trust to a beneficiary of the trust, unless the distribution is part of an arrangement under which the beneficiary pays an amount for the property that would reasonably be expected to be paid on a disposal at arm’s length:

(d)

the transfer of property on a distribution in kind by a company in a transfer of value caused by a shareholding in the company under section CD 6 (When is a transfer caused by a shareholding relationship?):

(e)

the transfer of property on the making of a gift:

(f)

the transfer of property on a settlement by the trustee of a trust on the trustee of another trust, if authorised under—

(i)

a trust instrument as a power of advancement or resettlement:

(ii)

section 41 of the Trustee Act 1956 as the payment of money or the application of property.

Some definitions

(2)

In this subpart,—

close relative, in relation to a transfer from a person’s estate, means—

(a)

a surviving spouse, civil union partner, or de facto partner of the deceased person:

(b)

a person who is within the second degree of relationship to the deceased person

property includes a look-through interest for a look-through company

tax-base property means—

(a)

revenue account property:

(b)

an attributing interest in a foreign investment fund (FIF):

(c)

a financial arrangement other than an arrangement for which the deceased person, or their trustee, was a cash basis person:

(d)

an item for which a deduction for an amount of depreciation loss arises.

Defined in this Act: amount, attributing interest, cash basis person, company, deduction, de facto partner, depreciation loss, FIF, financial arrangement, look-through company, look-through interest, property, revenue account property, settlement, transfer of value, trustee

Compare: 2004 No 35 s FI 1

Section FC 1 heading: replaced (with effect on 1 April 2008), on 24 February 2016, by section 166(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section FC 1(1): amended, on 30 March 2017, by section 98 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section FC 1(1)(c): replaced (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 24 February 2016, by section 166(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section FC 1(2) property: inserted, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 63(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section FC 1 list of defined terms look-through company: inserted, on 1 April 2011, by section 63(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section FC 1 list of defined terms look-through interest: inserted, on 1 April 2011, by section 63(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Section FC 1 list of defined terms property: inserted (with effect on 1 April 2008), on 24 February 2016, by section 166(3) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).