(1)This Part sets out special rules about settlements and trustees.
(2)Chapter 2 contains general provision about settlements and trustees, for example, definitions of expressions relating to settlements.
(3)Chapter 3 provides for income tax to be charged at the dividend trust rate or at the trust rate on certain amounts included in the net income of the trustees of a settlement.
(4)Chapter 4 provides—
(a)for expenses of the trustees of a settlement to be set against the trustees' trust rate income (see section 463(2)), and
(b)consequentially, for the amount of the trust rate income to be reduced.
(5)Chapter 5 qualifies section 479 (which is in Chapter 3) in the case of the trustees of an approved share incentive plan.
(6)Chapter 6 provides that the first slice of the trust rate income of the trustees of a settlement is not to be charged at the dividend trust rate or at the trust rate.
(7)Chapter 7 deals with the treatment of payments made by the trustees of a settlement in the exercise of a discretion.
This affects the way the trustees and the recipients of such payments are taxed.
(8)Chapter 8 deals with the treatment of expenses of the trustees of a settlement where income arising to the trustees is, before being distributed, the income of a person other than the trustees themselves.
This affects the way that other person is taxed on that income.
(9)Chapter 9 deals with unauthorised unit trusts.
(10)Chapter 10 deals with heritage maintenance settlements.
(11)See also Part 10 for special rules about charitable trusts.
(12)See also Chapter 4 of Part 2 of FA 2005 for provision about trusts with vulnerable beneficiaries.