(1)This section applies if in a tax year the trustees of an unauthorised unit trust are treated as making a deemed payment.
(2)The trustees are entitled to a relief for the tax year equal to the gross amount of the payment.
(3)The relief is given by deducting that gross amount in calculating the trustees' net income for the tax year (see Step 2 of the calculation in section 23).
(4)But this is subject to subsections (5) to (7) F1....
(5)Relief is not to be given for the payment so far as it is ineligible for relief.
(6)For the purpose of determining the extent to which the payment is ineligible for relief (if at all) section 450 applies in relation to the payment as that section applies in relation to a payment to which section 449 applies.
(7)The total amount of the reliefs given under this section to the trustees for the tax year cannot be greater than the amount of the trustees' modified net income for the tax year (see section 1025).
(8)In this section F2... “deemed payment” and “the gross amount” have the meanings given by section 941(6).
Textual Amendments
F1Words in s. 505(4) omitted (21.7.2008 with effect in accordance with s. 66(8) of the amending Act) by virtue of Finance Act 2008 (c. 9), s. 66(4)(l)(vi)
F2Words in s. 505(8) omitted (21.7.2008 with effect in accordance with s. 66(8) of the amending Act) by virtue of Finance Act 2008 (c. 9), s. 66(4)(l)(vi)
Modifications etc. (not altering text)
C1S. 505(4) modified by Income and Corporation Taxes Act 1988 (c. 1), s. 339(3B)(a) (as inserted by The Enactment of Extra-Statutory Concessions Order 2010 (S.I. 2010/157), arts. 1, 5(1)(2))