Income Tax Act 2007 (c. 3)

Part 9 U.K. Special rules about settlements and trustees

Chapter 1 U.K. Introduction

464 Scottish trusts U.K.

(1) This section applies if—

(a) income arises to trustees under a trust having effect under the law of Scotland,

(b) the trustees are UK resident, and

(c) a beneficiary under the trust (“B”) would have an equitable right in possession to the income if the trust had effect under the law of England and Wales.

(2) B is treated for income tax purposes as having an equitable right in possession to the income (even though B has no such right under the law of Scotland).