Income Tax Act 2007 (c. 3)

Part 9 U.K. Special rules about settlements and trustees

Chapter 7 U.K. Discretionary payments

498 Types of income tax for the purposes of section 497 U.K.

(1) The types of amount referred to at Step 2 in section 497 are as follows.

Type 1

The amount of any tax on income (other than income of a kind mentioned below in relation to Type F1 [F2 ... 3A]) charged at the dividend trust rate or at the trust rate.

F3 ...

F3 ...

[F4 Type 3A

The amount of tax at the nominal rate on any amount in respect of which—

(a) the trustees are liable to income tax under section 467 of ITTOIA 2005 (gains from contracts for life insurance etc),

(b) the trustees are liable to income tax at the trust rate by virtue of section 482 above, and

(c) tax at the [F5 basic rate] is treated as having been paid by virtue of section 530 of ITTOIA 2005 (life insurance).]

F6 ...

Type 5

The amount of tax on any income determined in accordance with section 26 of FA 2005 (special tax treatment for trusts for the benefit of vulnerable persons).

F9 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F10 (2A) In relation to Type 3A, the reference to the nominal rate is a reference to a rate equal to the difference between the trust rate and the [F11 basic rate] .]

(3) In relation to Types 1 to 4, references to income do not include income the tax on which is reduced in accordance with section 26 of FA 2005.

Textual Amendments

F1 Words in s. 498(1) omitted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 63(7)(a)(i)

F2 Words in s. 498(1) substituted (21.7.2008 with effect in accordance with s. 56(4) of the amending Act) by Finance Act 2007 (c. 11), s. 56(2)(a)

F3 Words in s. 498(1) omitted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 63(7)(a)(ii)

F4 Words in s. 498(1) inserted (21.7.2008 with effect in accordance with s. 56(4) of the amending Act) by Finance Act 2007 (c. 11), s. 56(2)(b)

F5 Words in s. 498(1) substituted (21.7.2008 with effect in accordance with Sch. 1 para. 65 of the amending Act) by Finance Act 2008 (c. 9), Sch. 1 para. 22(2)

F6 Words in s. 498(1) omitted (6.4.2024 in relation to the tax year 2024-25 and subsequent tax years) by virtue of Finance (No. 2) Act 2023 (c. 30), Sch. 2 paras. 13(3)(i), 14(4)

F7 Words in s. 498(1) omitted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 63(7)(a)(iii)

F8 Words in s. 498(1) omitted (21.7.2008 with effect in accordance with Sch. 1 para. 65 of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 1 para. 22(3)

F9 S. 498(2) omitted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 63(7)(b)

F10 S. 498(2A) inserted (21.7.2008 with effect in accordance with s. 56(4) of the amending Act) by Finance Act 2007 (c. 11), s. 56(3)

F11 Words in s. 498(2A) substituted (21.7.2008 with effect in accordance with Sch. 1 para. 65 of the amending Act) by Finance Act 2008 (c. 9), Sch. 1 para. 22(4)