Income Tax (Trading and Other Income) Act 2005

Charge to tax under Chapter 5 U.K.

619 Charge to tax under Chapter 5 U.K.

(1) Income tax is charged on—

(a) income which is treated as income of a settlor as a result of section 624 (income where settlor retains an interest),

(b) income which is treated as income of a settlor as a result of section 629 (income paid to [F1 relevant] children of settlor),

(c) capital sums which are treated as income of a settlor as a result of section 633 (capital sums paid to settlor by trustees of settlement), and

(d) capital sums which are treated as income of a settlor as a result of section 641 (capital sums paid to settlor by body connected with settlement).

[F2 (2) For the purposes of [F3 Chapter 2 of Part 2 of ITA 2007 (rates at which income tax is charged)] , where income of another person is treated as income of the settlor and is charged to tax under subsection (1)(a) or (b) above, it shall be charged in accordance with whichever provisions of the [F4 Income Tax Acts] would have been applied in charging it if it had arisen directly to the settlor.]

Textual Amendments

F1 Word in s. 619(1)(b) substituted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), reg. 186

F2 S. 619(2) substituted (19.7.2006 with effect as mentioned in Sch. 13 para. 5(2) of the amending Act) for s. 619(2)-(4) by Finance Act 2006 (c. 25), s. 89, Sch. 13 para. 5(1)

F3 Words in s. 619(2) substituted (6.4.2007 with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1027, 1034, Sch. 1 para. 550(a) (with transitional provisions and savings in Sch. 2)

F4 Words in s. 619(2) substituted (6.4.2007 with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1027, 1034, Sch. 1 para. 550(b) (with transitional provisions and savings in Sch. 2)

[F5 619A Income treated as highest part of settlor's total income U.K.

(1) This section applies to income which is treated as income of a settlor as a result of section 624 (income where settlor retains an interest) or 629 (income paid to unmarried minor children of settlor).

(2) The income is treated as the highest part of the settlor's total income for the purposes of section 619 (so far as it relates to the income).

(3) See section 1012 of ITA 2007 (relationship between highest part rules) for the relationship between—

(a) the rule in subsection (2), and

(b) other rules requiring particular income to be treated as the highest part of a person's total income.]

Textual Amendments

F5 S. 619A inserted (6.4.2007 with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1027, 1034, Sch. 1 para. 551 (with transitional provisions and savings in Sch. 2)

620 Meaning of “settlement” and “settlor” U.K.

(1) In this Chapter—

• “settlement” includes any disposition, trust, covenant, agreement, arrangement or transfer of assets (except that it does not include a charitable loan arrangement), and

• “settlor”, in relation to a settlement, means any person by whom the settlement was made.

(2) A person is treated for the purposes of this Chapter as having made a settlement if the person has made or entered into the settlement directly or indirectly.

(3) A person is, in particular, treated as having made a settlement if the person—

(a) has provided funds directly or indirectly for the purpose of the settlement,

(b) has undertaken to provide funds directly or indirectly for the purpose of the settlement, or

(c) has made a reciprocal arrangement with another person for the other person to make or enter into the settlement.

(4) This Chapter applies to settlements wherever made.

(5) In this section—

• “charitable loan arrangement” means any arrangement so far as it consists of a loan of money made by an individual to a charity either—

  (a)

  for no consideration, or

  (b)

  for a consideration which consists only of interest, and

• “charity” includes

  (a)

  [F6 the Trustees of the National Heritage Memorial Fund, [F7 and]

  (b)

  the Historic Buildings and Monuments Commission for EnglandF8 ...

  (c)

  F8 ...]

  .

Textual Amendments

F6 Words in s. 620(5) substituted (6.4.2007 with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1027, 1034, Sch. 1 para. 552 (with transitional provisions and savings in Sch. 2)

F7 Word in s. 620(5) inserted (1.4.2012) by The Public Bodies (Abolition of the National Endowment for Science, Technology and the Arts) Order 2012 (S.I. 2012/964), arts. 1(2), 3(1), Sch.

F8 Words in s. 620(5) omitted (1.4.2012) by virtue of The Public Bodies (Abolition of the National Endowment for Science, Technology and the Arts) Order 2012 (S.I. 2012/964), arts. 1(2), 3(1), Sch.

Modifications etc. (not altering text)

C1 S. 620 applied (with effect in accordance with Sch. 23 para. 65 of the amending Act) by Finance Act 2011 (c. 11), Sch. 23 paras. 26(2)65(1)(a) (with Sch. 23 paras. 5065(1)(b))