Income and Corporation Taxes Act 1988

[F1469 Other unit trusts.U.K.

(1)This section applies to—

(a)M1any unit trust scheme [F2that is [F3an unauthorised unit trust within the meaning of section 989 of ITA 2007]]; F4. . .

(b)F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

except where the trustees of the scheme are not resident in the United Kingdom.

(2)Income arising to the trustees of the scheme shall be regarded for the purposes of the [F5Corporation Tax Acts] as income of the trustees (and not as income of the unit holders) [F6; and the trustees (and not the unit holders) shall be regarded as the persons to or on whom allowances or charges are to be made under the provisions of those Acts relating to relief for capital expenditure]F7. . . .]

[F8(2A)F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F10(2B)F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]]

(3)F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F11(4A)For the purposes of the Corporation Tax Acts, the trustees are treated as making an annual payment (under deduction of income tax) to each unit holder if an amount is shown in the scheme's accounts as income available for payment to unit holders or for investment.

(4B)The amount of an annual payment to a unit holder for a distribution period before the deduction of income tax is its gross amount.

(4C)Section 548(2) of ITTOIA 2005 applies for the purpose of calculating the gross amount of an annual payment for a distribution period as it applies for the purpose of calculating the gross amount of income treated as received for a distribution period under Chapter 10 of Part 4 of that Act.

(4D)Section 941 of ITA 2007 deals with the deduction of income tax from the gross amount so calculated.]

(5)The date on which the annual [F12payment is] treated as made shall be the date or latest date provided by the terms of the scheme for any distribution in respect of the distribution period in question, except that, if—

(a)the date so provided is more than 12 months after the end of the period; or

(b)no date is so provided,

the date on which the [F12payment is] treated as made shall be the last day of the period.

[F13(5A)F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5B)F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5C)F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5D)F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

(6)In this section “distribution period”[F15means a period beginning on or after 1st April 1987 over which income from the investments subject to the trusts is aggregated for the purposes of ascertaining the amount available for distribution to unit holders, but]—

(a)if the scheme does not make provision for distribution periods, then for the purposes of this section its distribution periods shall be taken to be successive periods of 12 months the first of which began with the day on which the scheme took effect; and

(b)if the scheme makes provision for distribution periods of more than 12 months, then for the purposes of this section each of those periods shall be taken to be divided into two (or more) distribution periods, the second succeeding the first after 12 months (and so on for any further periods).

[F16(6A)F17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

(7)F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8)F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9)F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10)F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11)This section shall have effect in relation to distribution periods beginning on or after 6th April 1987.

Textual Amendments

F1Ss. 468H-468R and cross-headings inserted (with effect in accordance with Sch. 14 para. 7 of the amending Act) by Finance Act 1994 (c. 9), Sch. 14 para. 2

F2Words in s. 469(1)(a) substituted (with effect in accordance with s. 113(4)-(11) of the amending Act) by Finance Act 1994 (c. 9), s. 113(3)(a)

F3Words in s. 469(1) substituted (3.2.2009 with effect in accordance with art. 1(2) of the amending S.I.) by The Income Tax Act 2007 (Amendment) Order 2009 (S.I. 2009/23), arts. 1(1), 2(2)

F4S. 469(1)(b) and preceding word repealed (with effect in accordance with Sch. 41 Pt. 5(1) Note 2 of the repealing Act) by Finance Act 1996 (c. 8), Sch. 41 Pt. 5(1)

F5Words in s. 469(2) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 87(2)(a) (with Sch. 2)

F6Words in s. 469(2) inserted (3.2.2009 with effect in accordance with art. 1(2) of the amending S.I.) by The Income Tax Act 2007 (Amendment) Order 2009 (S.I. 2009/23), arts. 1(1), 2(3)

F7Words in s. 469(2) repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 87(2)(b), Sch. 3 Pt. 1 (with Sch. 2)

F8S. 469(2A)(2B) inserted (with effect in accordance with Sch. 4 para. 12(5) of the amending Act) by Finance (No. 2) Act 1997 (c. 58), Sch. 4 para. 12(3)

F9S. 469(2A)-(4) repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 87(3), Sch. 3 Pt. 1 (with Sch. 2)

F10S. 469(2B) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 181(3) (with Sch. 2)

F11S. 469(4A)-(4D) inserted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 87(4) (with Sch. 2)

F12Words in s. 469(5) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 87(5) (with Sch. 2)

F14S. 469(5A)-(5D)(7)-(10) repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 87(6), Sch. 3 Pt. 1 (with Sch. 2)

F15Words in s. 469(6) substituted (with effect in accordance with Sch. 14 para. 7 of the amending Act) by Finance Act 1994 (c. 9), Sch. 14 para. 5

F16S. 469(6A) inserted (with effect in accordance with s. s. 113(4)-(11) of the amending Act) by Finance Act 1994 (c. 9), s. 113(3)(b)

F17S. 469(6A) omitted (3.2.2009 with effect in accordance with art. 1(2) of the repealing S.I.) by virtue of The Income Tax Act 2007 (Amendment) Order 2009 (S.I. 2009/23), arts. 1(1), 2(4)

Modifications etc. (not altering text)

Marginal Citations

M1Source—1970 s.354A; 1987 s.39; 1987 (No.2) s.40(1)