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:


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


    •     an amount of a type set out in ITA 2007, s 4823

Years prior to 2016/17

An investment was not a 'relevant investment' (and therefore not subject to deduction of tax at source) where an 'appropriate person'4 made a declaration to the deposit-taker or building

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