Finance Act 1993

9 (1) In subsection (2) of section 687 of that Act (deemed deduction from payment under discretionary trust), for the words from “a rate” to “in force” there shall be substituted “the rate applicable to trusts”.

(2) In subsection (3) of that section—

(a) in paragraph (a), for “and charged at the additional as well as at the basic rate” there shall be substituted “which (not being income the tax on which falls within paragraph (aa) or (b) below) is charged at the rate applicable to trusts”;

(b) after that paragraph there shall be inserted the following paragraph—

“(aa) the amount of tax which, by virtue of section 233(1B), is charged, at a rate equal to the difference between the lower rate and the rate applicable to trusts, on the amount or value of the whole or any part of any non-qualifying distribution included in the income arising to the trustees;”

(c) in paragraph (b), as it has effect by virtue of section 79(2) of this Act, for “the additional rate” there shall be substituted “a rate equal to the difference between the lower rate and the rate applicable to trusts”;

(d) in each of paragraphs (e) to (i) (except paragraph (g)), and in paragraph (j) as it so has effect, for the words from “at a rate” to “additional rate” there shall be substituted “at the rate applicable to trusts”.