Income Tax (Trading and Other Income) Act 2005

Other supplementary provisions

646 Adjustments between settlor and trustees etc.

(1) A settlor is entitled to recover from—

(a) any trustee, or

(b) any other person to whom the income is payable in connection with the settlement,

the amount of any tax paid by the settlor which became chargeable on the settlor under section 624 or 629.

(2) For this purpose, the settlor may require the Inland Revenue to provide the settlor with a certificate specifying—

(a) the amount of income in respect of which the settlor has so paid tax, and

(b) the amount of tax so paid.

(3) A certificate provided under subsection (2) is conclusive evidence of the facts stated in it.

(4) Subsection (5) applies if—

(a) a settlor obtains a repayment of tax in respect of an allowance or relief, and

(b) the repayment is in excess of the amount of the repayment to which the settlor would have been entitled but for sections 624 to 632.

(5) The settlor must pay an amount equal to the excess to—

(a) the trustee, or

(b) the other person to whom the income is payable by virtue of or as a result of the settlement.

(6) If there are two or more such persons, the amount must be apportioned among them as the case may require.

(7) Any question as to—

(a) the amount of a payment under subsection (5), or

(b) an apportionment to be made under subsection (6),

is to be decided by the General Commissioners whose decision is final.

(8) Nothing in sections 624 to 632 is to be read as excluding a charge to tax on the trustees as persons by whom any income is received.

647 Power to obtain information

(1) The Inland Revenue may by notice require any party to a settlement to provide them, within such period as they may direct, with such particulars as they consider necessary for the purposes of this Chapter.

(2) The period concerned must be not less than 28 days.

648 Income arising under a settlement

(1) References in this Chapter to income arising under a settlement include—

(a) any income chargeable to income tax by deduction or otherwise, and

(b) any income which would have been so chargeable if it had been received in the United Kingdom by a person domiciled, resident and ordinarily resident there.

(2) But this is subject to the rule in subsection (3) which applies if, in a tax year, the settlor is—

(a) not domiciled in the United Kingdom,

(b) not UK resident, or

(c) not ordinarily UK resident.

(3) The rule is that references in this Chapter to income arising under a settlement do not include income arising under the settlement in that tax year in respect of which the settlor, if the settlor were actually entitled to it, would not be chargeable to income tax by deduction or otherwise because of the settlor not being domiciled in the United Kingdom, UK resident or ordinarily UK resident.

(4) Subsection (5) qualifies the rule in subsection (3) if such income is remitted to the United Kingdom in circumstances such that, if the settlor were actually entitled to the income when remitted, the settlor would be chargeable to income tax because of being UK resident.

(5) The income is treated for the purposes of this Chapter as arising under the settlement in the year in which it is remitted.