Part 9

Special rules about settlements and trustees
Chapter 7

Discretionary payments

Income tax charged on trustees
496
1
Income tax is charged for a tax year if—
a
in the tax year the trustees of a settlement make payments as a result of which income tax is treated as having been paid under section 494, and
b
amount A is greater than amount B.
2
Amount A is the total amount of the income tax treated under section 494 as having been paid.
3
Amount B is the amount of the trustees' tax pool available for the tax year (see section 497).
4
The amount of the tax charged under this section is equal to the difference between amounts A and B.
5
The trustees are liable for the tax.