Part 4Savings and investment income
Chapter 10Distributions from unauthorised unit trusts
548Income charged
1
Tax is charged under this Chapter on the gross amount of the income treated as received by the unit holder in the tax year.
2
To calculate the gross amount of the income treated as received by a unit holder for a distribution period—
Step 1
Calculate the unit holder's share of the scheme's available income by applying the formula—
where—
SAI is the total amount shown in the scheme's accounts as income available for payment to unit holders or for investment,
R is the unit holder's rights, and
TR is all the unit holders' rights.
Step 2
Gross up the unit holder's share of the scheme's available income by reference to the basic rate for the tax year in which the income from the scheme is treated as received.
3
The income from a scheme for a distribution period is treated as received on the date or latest date provided by the terms of the scheme for any distribution for the period, unless that date is more than 12 months after it ends.
4
If—
a
that date is more than 12 months after the distribution period ends, or
b
no date is so provided,
the income for the period is treated as received on the last day of the period.
5
In this section “distribution period” means a period over which income from the investments subject to the trusts is aggregated to ascertain the amount available for distribution to unit holders.
This is subject to subsections (6) and (7).
6
If the scheme does not provide for distribution periods, its distribution periods are taken to be successive periods of 12 months, the first of which began with the day on which the scheme took effect.
7
If the scheme provides for a distribution period of more than 12 months, each successive period of 12 months within that period and any remaining period of less than 12 months are taken to be distribution periods.