572. Payments to relevant children of the settlor.

Income which arises1 under a settlement2 is treated for income tax purposes as the income of the settlor3 and of the settlor alone for a tax year4 if in that year and during his life:

  1.  

    (1)     it is paid5 to or for the benefit of a relevant minor child6 of the settlor; or

  2.  

    (2)     would otherwise7 be treated as income of a relevant minor child of the settlor; and

  3.  

    (3)     is not treated8 as the income of the settlor9.

Where income arising under a settlement is retained or accumulated by the trustees, and a payment is subsequently made in connection