Income Tax (Trading and Other Income) Act 2005

629 Income paid to [F1 relevant] children of settlor U.K.

(1) Income which arises under a settlement is treated for income tax purposes as the income of the settlor and of the settlor alone for a tax year if, in that year and during the life of the settlor, it—

(a) is paid to, or for the benefit of, [F2 a relevant] child of the settlor, or

(b) would otherwise be treated (apart from this section) as income of [F2 a relevant] child of the settlor.

(2) Subsection (1) does not apply to income which is treated as income of the settlor under section 624.

(3) Subsection (1) does not apply in relation to a child's relevant settlement income in any tax year if, in that year, the total amount of that income does not exceed £100.

(4) In subsection (3) a child's “relevant settlement income” means income—

(a) which is paid to or for the benefit of, or otherwise treated as income of, the child, and

(b) which (apart from subsection (3)) would be treated as income of the settlor under subsection (1).

(5) Subsection (1) does not apply so far as provided by section 630 (exception for gifts to charities).

(6) See—

• section 631 for the treatment for the purposes of subsection (1) of retained or accumulated income, and

• section 632 for the treatment for the purposes of this section and section 631 of certain deemed income connected to offshore income gains.

(7) In this section and sections 631 and 632—

(a) “child” includes a stepchild,

(b) “minor” means a person under the age of 18 years, and “minor child” is to be read accordingly, F3 . . .

(c) references to payments include payments in money's worth [F4 , and]

[F5 (d) “relevant child” means a minor child who is unmarried or not in a civil partnership.]

[F6 (8) Subsection (1) is subject to section 28A of FA 2005.]

Textual Amendments

F1 Word in s. 629 heading substituted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1, 192(4)

F2 Words in s. 629(1)(a)(b) substituted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1, 192(2)

F3 Word in s. 629(7)(b) omitted (5.12.2005) by virtue of The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1, 192(3)(a)

F4 Word in s. 629(7)(c) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1, 192(3)(b)

F5 S. 629(7)(d) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), regs. 1, 192(3)(c)

F6 S. 629(8) inserted (with effect in accordance with Sch. 13 para. 34(2) of the amending Act) by Finance Act 2006 (c. 25), Sch. 13 para. 34(1)