Part 9Special rules about settlements and trustees

Chapter 1Introduction

462Overview of Part

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 F1a Schedule 2 share incentive plan.

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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.

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10

Chapter 10 deals with heritage maintenance settlements.

11

See also Part 10 for special rules about charitable trusts F3 and section 838A for special provision about asbestos compensation settlements .

12

See also Chapter 4 of Part 2 of FA 2005 for provision about trusts with vulnerable beneficiaries.