Part 5 U.K. Miscellaneous income

Chapter 5 U.K. Settlements: amounts treated as income of settlor [F1 or family]

Textual Amendments

F1 Words in Pt. 5 Ch. 5 heading inserted (with effect in accordance with Sch. 10 para. 21 of the amending Act) by Finance Act 2018 (c. 3), Sch. 10 para. 3(2)

[F2 Transitional provision about protected foreign-source income and transitional trust income] U.K.

Textual Amendments

F2 S. 643A cross-heading substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), Sch. 12 paras. 11, 70(1)

[F3 643A Benefits paid out of protected foreign-source income or transitional trust income U.K.

(1) If—

(a) an individual to whom this section applies has an untaxed benefits total for a settlement for a tax year (see section 643B),

(b) there is available protected income in relation to the individual, the settlement and the tax year (see section 643C), and

(c) the individual is UK resident for the tax year,

an amount equal to so much of the untaxed benefits total as does not exceed the available protected income is treated for income tax purposes as income of the individual for the tax year.

(2) This section applies to—

(a) the settlor, and

(b) anyone who has at any time been a close member of the settlor’s family.

(3) If there is a choice about the individuals in whose case income is to be treated as arising under subsection (1), income is to be treated as arising—

(a) to such one or more of them as appears to an officer of Revenue and Customs to be just and reasonable, and

(b) if more than one, in such respective proportions as appear to the officer to be just and reasonable.]

Textual Amendments

F3 S. 643A substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), Sch. 12 paras. 13, 70(1)