A4.410 'Relevant investments'—settlement condition

Administration and compliance

A4.410 'Relevant investments'—settlement condition

A4.410 'Relevant investments'—settlement condition

An investment may qualify as a relevant investment by meeting the 'settlement condition'1. This condition is met if the investment is income arising to the trustees of a discretionary or accumulation settlement and they receive it in that capacity2.

For these purposes, a 'discretionary or accumulation settlement' is a settlement in which any income arising to the trustees would (unless treated as income of the settlor) be to any extent, either of the following types of income:


    (a)     accumulated or discretionary income as defined by ITA 2007, s 480, but excluding income arising under a charitable trust or unauthorised unit trust; or


    (b)     an amount of a type set out in ITA 2007, s 4823.

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