561. Payments out of capital treated as income.

Where the terms of a will provide that, if the income from a trust fund is insufficient to pay an annuity, a sufficient sum is to be raised by the trustees out of capital to pay the annuity in full, the whole of the annuity is income of the recipient and, to the extent that the annuity has not been paid out of taxed income but out of capital, the trustees are accountable for the tax on it1. Similarly, where there is a provision that a deficiency of income in a particular year is to be made up out