(1)Income is accumulated or discretionary income so far as—
(a)it must be accumulated, or
(b)it is payable at the discretion of the trustees or any other person,
and it is not excluded by subsection (3).
(2)The cases covered by subsection (1)(b) include cases where the trustees have, or any other person has, any discretion over one or more of the following matters—
(a)whether, or the extent to which, the income is to be accumulated,
(b)the persons to whom the income is to be paid, and
(c)how much of the income is to be paid to any person.
(3)Income is excluded for the purposes of subsection (1) so far as—
(a)before being distributed, it is the income of any person other than the trustees,
(b)it is income from property within subsection (4), or
(c)it is income from service charges (as defined in section 18(1) of the Landlord and Tenant Act 1985 (c. 70)) held on trust by a relevant housing body (see subsection (5)).
(4)Property is within this subsection if it—
(a)is held for the purposes of a superannuation fund to which section 615(3) of ICTA (superannuation funds relating to undertakings outside the UK) applies, but
(b)is not held as a member of a property investment LLP.
(5)“Relevant housing body” means—
(a)a local authority,
(b)a registered social landlord,
(c)a Northern Ireland housing association,
(d)a charitable housing association,
(e)a charitable housing trust,
(f)a housing action trust established under Part 3 of the Housing Act 1988 (c. 50),
(g)the Housing Corporation, and
(h)the Northern Ireland Housing Executive.
(6)In subsection (5)—
“charitable housing association” means a society, body or company which—
meets the conditions in section 5(1)(a) and (b) of the Housing Act 1985 (c. 68), and
is registered in a register kept under section 3 of the Charities Act 1993 (c. 10) or section 3 of the Charities and Trustee Investment (Scotland) Act 2005 (asp. 10),
“charitable housing trust” means a corporation or body which—
meets the condition in section 6(a) or (b) of the Housing Act 1985, and
is registered in a register kept under section 3 of the Charities Act 1993 or section 3 of the Charities and Trustee Investment (Scotland) Act 2005 (asp. 10),
“Northern Ireland housing association” means a body registered in the register maintained under Article 14 of the Housing (Northern Ireland) Order 1992 (S.I. 1992/1725 (N.I. 15)), and
“registered social landlord” means a body registered in a register maintained under section 1 of the Housing Act 1996 (c. 52) or section 57 of the Housing (Scotland) Act 2001 (asp. 10).