Part 2Income tax, corporation tax and capital gains tax

Chapter 4Trusts with vulnerable beneficiary

Income tax

26Amount of relief

F1(1)

The trustees' liability to income tax for the tax year is to be reduced by an amount equal to—

TQTI-VQTImath

where—

TQTI is an amount determined in accordance with section 27 (income tax liability of trustees in respect of qualifying trusts income), and

VQTI is an amount determined in accordance with section 28 (extra F2 income tax to which vulnerable person would be liable if qualifying trusts income were income of his).

F3(2)

The tax reduction is given effect at Step 6 of the calculation in section 23 of ITA 2007.