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 643F Income attributed by section 643A to user of remittance basis U.K.

(1) This section applies where—

(a) in the case of a settlement, income (“the deemed income”) [F4 was treated by section 643A as arising to an individual for any of the tax years 2018-19 to 2024-25, and]

(b) section 809B, 809D or 809E of ITA 2007 (remittance basis) [F5 applied] to the individual for that year.

(2) The deemed income is treated as relevant foreign income of the individual.

(3) In the application of section 832 to the deemed income, subsection (2) of that section has effect with the omission of paragraph (b).

(4) For the purposes of Chapter A1 of Part 14 of ITA 2007 (remittance basis) treat a benefit, or any protected income, that relates to any part of the deemed income as deriving from that part of the deemed income.

(5) In subsection (4) “relates” has the meaning given by section 643G.

(6) In this section and section 643G—

• “protected income” means the income that [F6 under section 643C formed] PFSI in the calculation of the settlement's available protected income in the case of the relevant individual for the year, and

• “the relevant individual”—

  (a)

  where the deemed income [F7 was treated] as income of an individual by section 643A(1)(a) both before and after the application of section 643A(3) and (4), means that individual, and

  (b)

  where the deemed income [F7 was treated] as income of the settlor by section 643A(3) or (4) after having been treated as income of another individual by section 643A(1), means that other individual.]

[F8 (7) A reference in this section to section 643A or 643C (or to any provision of that section) is to that section (or provision) as it had effect for the tax year in which the deemed income was treated as arising to the individual.]

Textual Amendments

F3 Ss. 643A-643N and cross-heading inserted (with effect in accordance with Sch. 10 para. 21 of the amending Act) by Finance Act 2018 (c. 3), Sch. 10 para. 11 (with Sch. 10 para. 22)

F4 Words in s. 643F(1)(a) substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), Sch. 12 paras. 18(2)(a), 70(1)

F5 Word in s. 643F(1)(b) substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), Sch. 12 paras. 18(2)(b), 70(1)

F6 Words in s. 643F(6) substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), Sch. 12 paras. 18(3)(a), 70(1)

F7 Words in s. 643F(6) substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), Sch. 12 paras. 18(3)(b), 70(1)

F8 S. 643F(7) inserted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), Sch. 12 paras. 18(4), 70(1)