Commentary

I5.1129 Settlor interested trusts—income payment to beneficiary

IHT, trusts and estates

I5.1129 Settlor interested trusts—income payment to beneficiary

I5.1129 Settlor interested trusts—income payment to beneficiary

Where:

  1.  

    •     a settlor is charged to income tax in respect of the income arising to the trustees of a settlement (whether of the current year or an earlier year), and

  2.  

    •     a discretionary annual payment is made to a beneficiary out of the income charged on the settlor1

the beneficiary who receives such a payment is treated as having suffered tax on it, for 2010/11 onwards, at the additional rate or, in the case of a Scottish taxpayer, for 2016/17 only, at the Scottish additional rate2, and from 2017/18 at the highest Scottish

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