Paragraph 133: Amounts treated as income of settlor: income paid to unmarried minor child of settlor
3676.Section 64 of FA 1999 amended section 660B of ICTA principally to enable a charge on the settlor to be made where a settlor’s minor child benefited from a bare trust arrangement. The income arising in the trust did not have to be paid to or for the benefit of the child for a charge on the settlor to arise. It was simply sufficient for the income to be treated as the child’s income. The new provision applied only where the settlement was made or entered into after 8 March 1999 or, if it was not, to income that arose from funds provided after that date. This paragraph enables the pre-amendment legislation to apply to pre-March 1999 settlements.
3677.Sub-paragraph (3) applies instead of sub-paragraph (2) where the income paid to the minor child is partly from pre-March 1999 funds and partly other funds, such as where there has been an injection of funds into the settlement after 9 March 1999.