Part 5Miscellaneous income

Chapter 5Settlements: amounts treated as income of settlor or family

Transitional provision about protected foreign-source income and transitional trust income

F1643ZBProtected foreign-source income and transitional trust income not to be taxed elsewhere in Chapter

(1)

The rules in sections 624(1) and 629(1) do not apply to protected foreign-source income or transitional trust income (which, by virtue of section 648(3) to (5), may be treated as income arising under the settlement in the tax year 2025-26 or a subsequent tax year).

(2)

In the following provisions, “income” does not include protected foreign-source income or transitional trust income—

  • section 635(2) and (3)(d)(i);

  • section 636(1), (2) (in the words before paragraph (a)), (4) and (6);

  • section 637(5) and (7A).