Part 5 U.K. Miscellaneous income

Chapter 5 U.K. Settlements: amounts treated as income of settlor [F1 or family]

Textual Amendments

F1 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)

[F2 Benefits matched with protected foreign-source income U.K.

Textual Amendments

F2 Ss. 643A-643N and cross-heading inserted (with effect in accordance with Sch. 10 para. 21 of the amending Act) by Finance Act 2018 (c. 3), Sch. 10 para. 11 (with Sch. 10 para. 22)

643F Income attributed by section 643A to user of remittance basis U.K.

(1) This section applies where—

(a) in the case of a settlement, income (“the deemed income”) is treated by section 643A as arising to an individual for a tax year, and

(b) section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to the individual for that year.

(2) The deemed income is treated as relevant foreign income of the individual.

(3) In the application of section 832 to the deemed income, subsection (2) of that section has effect with the omission of paragraph (b).

(4) For the purposes of Chapter A1 of Part 14 of ITA 2007 (remittance basis) treat a benefit, or any protected income, that relates to any part of the deemed income as deriving from that part of the deemed income.

(5) In subsection (4) “relates” has the meaning given by section 643G.

(6) In this section and section 643G—

• “protected income” means the income that forms PFSI in the calculation of the settlement's available protected income in the case of the relevant individual for the year, and

• “the relevant individual”—

  (a)

  where the deemed income is treated as income of an individual by section 643A(1)(a) both before and after the application of section 643A(3) and (4), means that individual, and

  (b)

  where the deemed income is treated as income of the settlor by section 643A(3) or (4) after having been treated as income of another individual by section 643A(1), means that other individual.]