Amounts treated as income of settlor: income paid to unmarried minor children of settlorU.K.
133(1)In relation to income which—U.K.
(a)arises under a settlement made or entered into before 9th March 1999, and
(b)does not arise directly or indirectly from funds provided on or after that date,
section 629 applies with the omission from subsection (1) of paragraph (b) and the word “or” before that paragraph.
(2)Where subsection (1) of section 629 applies for a tax year only in relation to such income as is mentioned in sub-paragraph (1), that section applies with the substitution for subsections (3) and (4) of—
“(3)Income paid to or for the benefit of a child of a settlor is not treated as provided in subsection (1) for a tax year in which the total amount paid to or for the benefit of that child which but for this subsection would be so treated does not exceed £100.”
(3)Where subsection (1) of section 629 applies for a tax year in relation to such income as is mentioned in sub-paragraph (1) above and other income, that section applies with the substitution for subsection (4) of—
“(4)In subsection (3) a child's “relevant settlement income” means income which (apart from that subsection) would be treated as income of the settlor under subsection (1) and which—
(a)so far as consisting of such income as is mentioned in paragraph 133 of Schedule 2, is income paid to or for the benefit of the child, and
(b)so far as consisting of other income, is income paid to or for the benefit of, or otherwise treated as income of, the child.”
(4)Any apportionment required for the purposes of sub-paragraph (1)(b) is to be made on a just and reasonable basis.