Part 2Income tax, corporation tax and capital gains tax
Chapter 4Trusts with vulnerable beneficiary
Income tax
F128ADisapplication of section 629 of ITTOIA 2005
(1)
In a case where this section applies, section 629(1) of ITTOIA 2005 shall not apply in respect of a payment by the trustees of a settlement to a beneficiary under the settlement.
(2)
This section applies if in a year of assessment—
(a)
the trustees make a payment to a vulnerable person,
(b)
the payment is made out of qualifying trusts income,
(c)
the vulnerable person is a relevant child (within the meaning given by section 629 of ITTOIA 2005) of a settlor in relation to the settlement, and
(d)
the trustees have made a successful claim for special income tax treatment under section 25.