SCHEDULES

SCHEDULE 16 Foreign income dividends

Part IV Other provisions

Discretionary trusts

15

In section 687 of the Taxes Act 1988 (payments under discretionary trusts) in subsection (3) the following paragraph shall be inserted after paragraph (aa)—

aaa

the amount of tax at a rate equal to the difference between the lower rate and the rate applicable to trusts on any sum treated, under section 246D(4), as income of the trustees;