Income Tax Act 2007 (c. 3)

Part 9 U.K. Special rules about settlements and trustees

Chapter 3 U.K. Special rates for trustees' income

479 Trustees' accumulated or discretionary income to be charged at special rates U.K.

(1) This section applies if—

(a) accumulated or discretionary income arises to the trustees of a settlement, and

(b) the income does not arise under a [F1 charitable trust].

(2) Income tax is charged on the income at the rates referred to in this section instead of at the rates which would otherwise apply (for which see Chapter 2 of Part 2 (rates at which income tax is charged)).

(3) Income tax is charged on the income at the dividend trust rate so far as the income is dividend income.

(4) Otherwise, income tax is charged on the income at the trust rate.

(5) Section 488 disapplies this section in cases relating to [F2 Schedule 2] share incentive plans.

Textual Amendments

F1 Words in s. 479(1)(b) substituted (8.3.2012) (with effect in accordance with art. 17 of the commencing S.I.) by Finance Act 2010 (c. 13), Sch. 6 paras. 23(2), 34(2); S.I. 2012/736, art. 17

F2 Words in s. 479(5) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 70, 89 (with Sch. 8 paras. 90-96)

Modifications etc. (not altering text)

C1 S. 479 excluded (6.4.2014) by The Unauthorised Unit Trusts (Tax) Regulations 2013 (S.I. 2013/2819), regs. 1(3), 12(3)(d)