Part 9Special rules about settlements and trustees

Chapter 10Heritage maintenance settlements

Trustees' election in respect of income etc

508Election by trustees

1

The trustees of a heritage maintenance settlement may elect for this section to have effect for a tax year.

2

If an election under subsection (1) has effect for a tax year, the rules in subsections (3) and (4) apply.

3

Income arising in the year from the heritage maintenance property comprised in the settlement, which would otherwise be treated as income of the settlor under Chapter 5 of Part 5 of ITTOIA 2005, is not to be so treated.

4

Any sum applied out of the heritage maintenance property in the year for a property maintenance purpose, which would otherwise be treated for income tax purposes as the income of a person—

a

because of the person's interest in (or occupation of) the property in respect of which the sum is applied, or

b

under section 633 of ITTOIA 2005 (capital sums paid to settlor by trustees of settlement),

is not to be so treated.

5

An election under subsection (1) must be made on or before the first anniversary of the normal self-assessment filing date for the tax year to which it relates.