Part 3

Property income
Chapter 3

Profits of property businesses: basic rules

Tax reductions for non-deductible costs of a dwelling-related loan

Reduction for accumulated or discretionary trust income: entitlement
274B
1
If for a tax year the trustees of a settlement have—
a
a relievable amount in respect of a property business, or
b
two or more relievable amounts each in respect of a different property business,
the trustees of the settlement are entitled to relief under this section for that year in respect of that relievable amount or (as the case may be) each of those relievable amounts.
2
The trustees of a settlement have a relievable amount for a tax year in respect of a property business if for that year the trustees of the settlement have a current-year amount, or brought-forward amount, in respect of that business (or have both).
3
In the case of trustees of a settlement, their relievable amount for a tax year in respect of a property business is the total of—
a
their current-year amount (if any) for that year in respect of that business, and
b
their brought-forward amount (if any) for that year in respect of that business.
4
The trustees of a settlement have a current-year amount for a tax year in respect of a property business if—
a
an amount (“A”) would be deductible in calculating the profits for income tax purposes of that business for that year but for section 272A,
b
the trustees of the settlement are liable for income tax on N% of those profits, where N is a number—
i
greater than 0, and
ii
less than or equal to 100, and
c
in relation to the trustees of the settlement, that N% of those profits is accumulated or discretionary income,
in which event the current-year amount of the trustees of the settlement for that tax year in respect of that business is equal to N% of A.
5
As to whether the trustees of a settlement have a brought-forward amount for a tax year in respect of a property business, see section 274C(3).
6
In this section and section 274C “
accumulated or discretionary income
” has the meaning given by section 480 of ITA 2007.
Ss. 274A-274C substituted for s. 274A (15.9.2016) by Finance Act 2016 (c. 24), s. 26(1)