Commentary

I5.1120 Settlor charged to income tax—generally

IHT, trusts and estates

I5.1120 Settlor charged to income tax—generally

Circumstances when a settlor (or family member) is chargeable to income tax

I5.1120 Settlor charged to income tax—generally

Anti-avoidance legislation provides that in the following circumstances a settlor is chargeable to income tax1:

  1.  

    (a)     on the income arising under a settlement where he retains an interest in the settlement (see I5.1125–I5.1129)

  2.  

    (b)     on income of a settlement paid to an unmarried minor child of his (see I5.1130, I5.1131)

  3.  

    (c)     on certain capital payments (including loans) to him (see I5.1135–I5.1140)

  4.  

    (d)     on otherwise untaxed benefits provided by the trustees to the settlor or a close family member of the settlor

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