579BTrustees ceasing to be resident in the State.

(1)In this section and in the following sections of this Chapter—

“arrangements” means arrangements having the force of law by virtue of ^[1]>section 826^{<[1] [2]> [1]>}section 826(1)(a)^{<[1]<[2] [2]>} section 826(1)^<[2] (as extended to capital gains tax by section 828);

“the new assets” and “the old assets” have the meaning assigned, respectively, to them by section 597(4).

(2)This section shall apply where the trustees of a settlement become at any time (hereafter in this section referred to as the “relevant time”) neither resident nor ordinarily resident in the State.

(3)The trustees to whom this section applies shall, for the purposes of the Capital Gains Tax Acts, be deemed—

(a) to have disposed of the defined assets immediately before the relevant time, and

(b)immediately to have reacquired them,

at their market value at that time.

(4)Subject to subsections (5) and (6), the defined assets are all assets constituting settled property of the settlement immediately before the relevant time.

(5)If immediately after the relevant time—

(a)the trustees carry on a trade in the State through a branch or agency, and

(b)any assets are situated in the State and either used in or for the purposes of the trade or used or held for the purposes of the branch or agency,

the assets falling within paragraph (b) shall not be defined assets.

(6)Assets shall not be defined assets if—

(a)they are of a description specified in any arrangements, and

(b)the trustees would, were they to dispose of them immediately before the relevant time, fall to be regarded for the purposes of the arrangements as not being liable in the State to tax on gains accruing to them on the disposal.

(7)Notwithstanding anything in that section—

(a)section 597 shall not apply where the trustees—

(i)have disposed of the old assets, or their interest in them, before the relevant time, and

(ii)acquire the new assets, or their interest in them, after the relevant time, and

(b)where under section 597 a chargeable gain accruing on a disposal of old assets is treated as not accruing until a time later (being the time that the new assets cease to be used for the purposes of a trade or other purposes as referred to in subsection (2) of that section) than the time of the disposal, and, but for this subsection, the later time would fall after the relevant time, the chargeable gain shall be treated as accruing immediately before the relevant time,

unless the new assets are excepted from the application of this subsection by subsection (8).

(8)If at the time when the new assets are acquired—

(a)the trustees carry on a trade in the State through a branch or agency, and

(b)any new assets, which immediately after the relevant time, are situated in the State and either used in or for the purposes of the trade or used or held for the purposes of the branch or agency,

the assets falling within paragraph (b) shall be excepted from the application of subsection (7).

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(9) The trustees to whom this section applies may elect to pay capital gains tax in 6 equal instalments at yearly intervals, the first instalment of which shall be due and payable on 31 October in the year following the year in which there is deemed to have occurred, by virtue of subsection (3), the disposal and reacquisition by them of the defined assets, and the remaining 5 instalments shall be due and payable respectively on 31 October in each of the years following the year in which the first instalment became due and payable.

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