SCHEDULES

SCHEDULE 1Minor and consequential amendments

Part 2Other enactments

Income Tax (Trading and Other Income) Act 2005 (c. 5)

531

1

Amend section 467 (liability of trustees for tax on gains from contracts for life insurance etc) as follows.

2

After subsection (1) insert—

1A

If trustees are liable for tax under this Chapter, the gain is treated for income tax purposes as income of the trustees.

3

For subsection (7) substitute—

7

If trustees are liable for tax under this Chapter, it is charged at the savings rate if—

a

condition A is met, or

b

condition D is met and the trustees are trustees of a charitable trust.