Part 9Special rules about settlements and trustees

Chapter 1Introduction

464Scottish trusts

(1)

This section applies if—

(a)

income arises to trustees under a trust having effect under the law of Scotland,

(b)

the trustees are UK resident, and

(c)

a beneficiary under the trust (“B”) would have an equitable right in possession to the income if the trust had effect under the law of England and Wales.

(2)

B is treated for income tax purposes as having an equitable right in possession to the income (even though B has no such right under the law of Scotland).