Part 9Special rules about settlements and trustees

Chapter 3Special rates for trustees' income

481Other amounts to be charged at special rates for trustees

1

This section applies if—

a

the trustees of a settlement are liable for income tax on an amount of a type set out in section 482,

b

the trustees are not trustees of a unit trust scheme, and

c

the amount is not income arising under a F2charitable trust.

2

Income tax is charged on the amount at one of the rates referred to in this section instead of at the rate which would otherwise apply (for which see Chapter 2 of Part 2 (rates at which income tax is charged)).

This is subject to subsection (5).

3

If the amount is within Type 1 F1or Type 12 as set out in section 482, income tax is charged on the amount at the dividend trust rate.

4

Otherwise, income tax is charged on the amount at the trust rate.

5

Income tax is not to be charged as mentioned in subsection (2) so far as the amount—

a

is accumulated or discretionary income,

b

would be accumulated or discretionary income apart from section 480(3)(a) or (c), or

c

is income from property within subsection (6).

6

Property is within this subsection if it is held for the purposes of a superannuation fund to which section 615(3) of ICTA (superannuation funds relating to undertakings outside the UK) applies.