Part 5 Miscellaneous income

Chapter 5 Settlements: amounts treated as income of settlor

Income treated as income of settlor: retained interests

624 Income where settlor retains an interest

(1) Income which arises under a settlement is treated for income tax purposes as the income of the settlor and of the settlor alone if it arises—

(a) during the life of the settlor, and

(b) from property in which the settlor has an interest.

(2) For more on a settlor having an interest in property, see section 625.

(3) For exceptions to the rule in subsection (1), see—

• section 626 (exception for outright gifts between spouses),

• section 627 (exceptions for certain types of income), and

• section 628 (exception for gifts to charities).