Part 3Income tax, corporation tax and capital gains tax
Trusts
56Trust gains on contracts for life insurance
1
Section 498 of ITA 2007 (trustees' tax pool) is amended as follows.
2
In subsection (1)—
a
in Type 1, for “2 or 3” substitute “
2, 3 or 3A
”
, and
b
after Type 3 insert—
Type 3A The amount of tax at the nominal rate on any amount in respect of which—
a
the trustees are liable to income tax under section 467 of ITTOIA 2005 (gains from contracts for life insurance etc),
b
the trustees are liable to income tax at the trust rate by virtue of section 482 above, and
c
tax at the savings rate is treated as having been paid by virtue of section 530 of ITTOIA 2005 (life insurance).
3
After subsection (2) insert—
2A
In relation to Type 3A, the reference to the nominal rate is a reference to a rate equal to the difference between the trust rate and the savings rate.
4
The amendments made by this section have effect in relation to gains arising to the trustees of a settlement on or after 6th April 2007.