Valid from 19/03/1997
7(1)Where any profits or gains are treated, in accordance with paragraph 1 above, as income arising to trustees for any year of assessment, the relevant part of that income shall be treated for the purposes of the Tax Acts as if it were income to which section 686 applies (income taxable at the rate applicable to trusts).
(2)In sub-paragraph (1) above the reference to the relevant part of any income is a reference to so much (if any) of that income as—
(a)does not fall to be treated for the purposes of the Income Tax Acts as income of a settlor;
(b)is not income arising under a trust established for charitable purposes; and
(c)is not income from investments, deposits or other property held for any such purposes as are mentioned in sub-paragraph (i) or (ii) of section 686(2)(c) (property held for pension purposes).
(3)Subsection (6) of section 686 (meaning of “trustees” etc.) shall apply for the purposes of this paragraph as it applies for the purposes of that section.