Part 9Special rules about settlements and trustees
Chapter 7Discretionary payments
F1Payments constituting employment income of beneficiary
C1496BRelief for trustees
1
The trustees of a settlement are entitled (on making a claim in respect of a tax year) to repayment of an amount of income tax equal to the lesser of amount A and amount B.
2
Amount A is—
where—
TEI is the total of the amounts that are employment income of beneficiaries of the settlement because of discretionary employment income payments made in the tax year by the trustees, and
TR is the trust rate in force for the tax year.
3
Amount B is the amount of the trustees’ tax pool available for the tax year (see section 497) reduced (but not so that is goes below nil) by the total amount of income tax (if any) treated under section 494 as having been paid as a result of payments made by the trustees in the tax year.
4
A claim under this section may not be made before the end of the tax year to which it relates.
Ss. 496A , 496B and cross-heading inserted (with effect in accordance with art. 3(7) of the amending S.I.) by The Enactment of Extra-Statutory Concessions Order 2010 (S.I. 2010/157), arts. 1, 3(3) (with art. 3(10))