Search Legislation

Advanced Search

Income Tax Act 2007

Section 486: How allowable expenses are to be set against trust rate income

1421.This section explains in step terms how allowable expenses are to be set against the trust rate income. It is based on sections 686(2AA) and 689B of ICTA.

1422.The section makes it explicit that it is the grossed up amount of expenses that is set against income charged at the special rates. (The meaning of “grossing up” is given in section 998.) See Change 88 in Annex 1.

1423.Before the grossing up process, Step 1 eliminates a proportion of expenses in the case of non-UK resident trustees in receipt of untaxed income (see section 487).

1424.Steps 2 to 6 require dividend, savings and other income to be considered in turn.

1425.Dividend income not within subsection (2) corresponds to foreign income within section 689B(2A) of ICTA.

Back to top

Options/Help

Print Options

Close

Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources