FC 4 Property transferred to charities or to close relatives and others
When this section applies

(1)

This section applies in the circumstances described in section FC 1(1)(b) when tax-base property is transferred on a person’s death if—

(a)

each beneficiary of the deceased person is described in subsection (2); and

(b)

no life interest in the property is created; and

(c)

no trust over the property is created, other than a trust to execute the will and administer the estate; and

(d)

the net income of the estate is distributed as described in subsection (3).

Beneficiaries of deceased

(2)

A beneficiary of the deceased person must be—

(a)

a close relative of the deceased person:

(b)

a person exempt under section CW 41, CW 42, or CW 43 (which relate to exempt income of charities).

Income from estate must be distributed

(3)

While the administration of the estate is continuing, the net income of the estate is distributed to the extent allowed—

(a)

under the will or the rules governing intestacy; and

(b)

by the trustee’s legal obligations.

Transfer subject to subpart FB

(4)

The transfer is treated as a transfer of property on a settlement of relationship property under subpart FB (Transfers of relationship property).

Defined in this Act: close relative, net income, property, settlement of relationship property, tax-base property, trustee

Section FC 4: replaced (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 24 February 2016, by section 167(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section FC 4(1): amended (with effect on 6 October 2009), on 24 February 2016, by section 168(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section FC 4(4): amended (with effect on 6 October 2009), on 24 February 2016, by section 168(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).