Part 5Miscellaneous income
Chapter 5Settlements: amounts treated as income of settlor F5or family
Capital sums treated as income of settlor: trustees' payments
635Amount of available income
1
For the purposes of section 633 the amount of income available up to the end of any tax year is, in relation to any capital sum paid as mentioned in subsection (1) of that section by the trustees of a settlement, calculated as follows.
2
Add together the amount of F4unprotected income arising under the settlement in that year and any previous year which has not been distributed.
3
Deduct from that figure—
a
the amount of that income taken into account under section 633 in relation to that sum in any previous year or years,
b
the amount of that income taken into account under section 633 in relation to any other capital sums paid to the settlor in any year before that sum was paid,
c
any income arising under the settlement in that year or any previous year which has been treated as income of the settlor under section 624 or 629, and
4
See sections 636 and 637 for how to calculate amounts of undistributed income.
F65
In F3this section and sections 636 and 637 “unprotected income” means income which is not protected foreign-source income, and sections 628A(2) to (13) and 628B (meaning of “protected foreign-source income”) have effect also for this purpose.
Words in Pt. 5 Ch. 5 heading inserted (with effect in accordance with Sch. 10 para. 21 of the amending Act) by Finance Act 2018 (c. 3), Sch. 10 para. 3(2)