Part 2 U.K. Income tax, corporation tax and capital gains tax

Chapter 4 U.K. Trusts with vulnerable beneficiary

Income tax U.K.

26 Amount of relief U.K.

[F1 (1)] The trustees' liability to income tax for the tax year is to be reduced by an amount equal to—

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.]

Textual Amendments

F1 S. 26(1) renumbered (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 594 (with Sch. 2)

F2 Word in s. 26(1) inserted (with effect in accordance with Sch. 2 para. 22 of the amending Act) by Finance Act 2008 (c. 9), Sch. 2 para. 13

F3 S. 26(2) inserted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 594 (with Sch. 2)