Part 2Income tax, corporation tax and capital gains tax

Chapter 4Trusts with vulnerable beneficiary

Income tax

28AF1Disapplication 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.