Part 9Special rules about settlements and trustees
Chapter 9Unauthorised unit trusts
504Treatment of income of unauthorised unit trust
1
This section applies for income tax purposes in relation to an unauthorised unit trust if the trustees are UK resident.
2
If income arises to the trustees, the income is treated as the income of the trustees and not of the unit holders.
3
If income tax on any part of the income would apart from this subsection be charged at the dividend ordinary rate F1..., income tax on that part of the income is charged at the basic rate instead.
4
None of the following applies in relation to the income—
a
section 479,
c
section 399(2) and (6) of ITTOIA 2005 (person not entitled to tax credit treated as having paid income tax), and
d
section 400(2) and (3) of ITTOIA 2005 (person whose income includes non-qualifying distribution treated as having paid income tax).
5
Sections 494 and 495 do not apply in relation to payments made by the trustees.