280(1)Amend section 689B (order in which expenses to be set against income: trust management expenses) as follows.U.K.
(2)In subsection (2) for paragraphs (za) to (c) substitute—
“(a)so much of the income of the trustees as is income chargeable under Chapter 3 of Part 4 of ITTOIA 2005 (dividends etc. from UK resident companies etc.);
(b)income treated as arising to the trustees under Chapter 5 of that Part (stock dividends from UK resident companies); or
(c)income chargeable under Chapter 6 of that Part (release of loan to participator in close company).”
(3)In subsection (2A) for “income to which section 1A applies” to the end substitute “—
(a)income chargeable under Chapter 4 of Part 4 of ITTOIA 2005 (dividends from non-UK resident companies); or
(b)a relevant foreign distribution chargeable under Chapter 8 of Part 5 of that Act (income not otherwise charged).”
(4)After that subsection insert—
“(2B)In subsection (2A) “relevant foreign distribution” means any distribution of a company not resident in the United Kingdom which—
(a)is not chargeable under Chapter 4 of Part 4 of ITTOIA 2005, but
(b)would be chargeable under Chapter 3 of that Part if the company were resident in the United Kingdom.”