Part 9Special rules about settlements and trustees
C1Chapter 2General provision about settlements and trustees
Trustees
475Residence of trustees
F41
This section applies for income tax purposes and explains how to work out, in relation to the trustees of a settlement, whether or not the single person mentioned in section 474(1) is UK resident.
2
If at a time either condition A or condition B is met, then at that time the single person is F1UK resident.
3
If at a time neither condition A nor condition B is met, then at that time the single person is F2non-UK resident.
4
Condition A is met at a time if, at that time, all the persons who are trustees of the settlement are UK resident.
5
Condition B is met at a time if at that time—
a
at least one person who is a trustee of the settlement is UK resident and at least one such person is non-UK resident, and
b
a settlor in relation to the settlement meets condition C (see section 476).
6
If at a time a person (“T”) who is a trustee of the settlement acts as trustee in the course of a business which T carries on in the United Kingdom through a branch, agency or permanent establishment there, then for the purposes of subsections (4) and (5) assume that T is UK resident at that time.
F37
Subsection (8) applies if—
a
an individual becomes or ceases to be a trustee of the settlement during a tax year,
b
that year is a split year as respects the individual, and
c
the only period in that year when the individual is a trustee of the settlement falls wholly within the overseas part of the year.
8
The individual is to be treated for the purposes of subsections (4) and (5) as if he or she had been non-UK resident for the year (and hence for the period in that year when he or she was a trustee of the settlement).
9
But subsection (8) is subject to subsection (6) and, accordingly, an individual who is treated under subsection (8) as having been non-UK resident is, in spite of that, to be treated as UK resident whenever the individual acts as mentioned in subsection (6).
Pt. 9 Ch. 2 applied (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 1169(1), 1184(1) (with Sch. 2)