Income Tax (Trading and Other Income) Act 2005

Trustees

457 Trustees

(1) This section applies if profits are taken to arise on a disposal of a deeply discounted security by trustees.

(2) For the purposes of Chapter 5 of Part 5 (settlements: amounts treated as income of settlor), the profits are to be taken to be income arising under the settlement from the security.

(3) For the purposes of Chapter 1C of Part 15 of ICTA (settlements: liability of trustees), the profits are to be taken to be income arising to the trustees.

(4) Income tax that is charged on the trustees is to be charged at the rate applicable to trusts for the tax year in which the disposal occurs.

(5) If the trustees are trustees of a scheme to which section 469 of ICTA applies (unauthorised unit trusts), subsections (2) to (4) do not apply to any profits treated as income in the scheme’s accounts.

458 Non-UK resident trustees

(1) Tax is not charged under this Chapter if the disposal is made by the trustees of a settlement and they are non-UK resident.

(2) The following provisions do not apply if the disposal falls within subsection (1)—

• section 446 (strips of government securities: relief for losses), and

• section 454 (listed securities held since 26th March 2003: relief for losses).

(3) In this section “settlement” has the same meaning as in Chapter 5 of Part 5 (see section 620).