Part 9Special rules about settlements and trustees
Chapter 10Heritage maintenance settlements
Absence of election and income treated as income of settlor: special rules
510Sums applied for property maintenance purposes
1
This section applies if—
a
income arises from the heritage maintenance property comprised in a heritage maintenance settlement in a tax year in respect of which no election is made under section 508,
b
the income is treated under Chapter 5 of Part 5 of ITTOIA 2005 as income of the settlor, and
c
a sum in excess of the income is applied for a property maintenance purpose in the year.
2
Any such sum which is so applied in that year, which would otherwise be treated for income tax purposes as the income of a person—
a
because of the person's interest in (or occupation of) the property in respect of which the sum is applied, or
b
under section 633 of ITTOIA 2005 (capital sums paid to settlor by trustees of settlement),
is not to be so treated.
511Prevention of double taxation: reimbursement of settlor
1
This section applies to income arising from heritage maintenance property if—
a
the income is treated under Chapter 5 of Part 5 of ITTOIA 2005 as income of the settlor,
b
the income is applied in reimbursing the settlor for expenditure incurred by the settlor for a property maintenance purpose, and
c
the expenditure is deductible in calculating the profits of—
i
a trade, or
ii
a UK property business,
carried on by the settlor.
2
Any such income—
a
is not to be brought into account as a receipt in calculating the profits of that trade or business, and
b
is not to be treated as income of the settlor otherwise than under Chapter 5 of Part 5 of ITTOIA 2005.