Commentary

I5.1207 Change of residence of trustees

IHT, trusts and estates

I5.1207 Change of residence of trustees

I5.1207 Change of residence of trustees

Trustees' residence and income tax

Where an individual trustee's residence status changes during the tax year this does not usually affect the residence status of the trust. Under the statutory residence test applying for 2013/14 onwards, even though the individual trustee may be entitled to split the tax year into resident and non-resident parts for their own tax purposes, the trust cannot split the tax year and is either resident (and subject to UK income tax) or not resident (and not subject to UK income tax) for the whole tax year1 (see I5.1205).

However, if an individual who is entitled to split the tax year becomes, or ceases to be, a trustee during that year and acts as trustee only during the overseas part of the year, they are treated as being not resident for the whole of that tax year for the purpose of determining the residence of the trust, unless they are a

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