3380.The rule about when trustees’ expenses are taken into account will operate from 6 April 2007 on an “incurred” rather than on a “paid” basis. See Change 87 in Annex 1. This provision deals with expenses that were incurred before 6 April 2007.
3381.This provision ensures that the tax pool as at 5 April 2007 is carried forward to 2007-08 (including in cases where trustees have been non-UK resident: see Change 89 in Annex 1).