Part 9 U.K. Special rules about settlements and trustees

Chapter 10 U.K. Heritage maintenance settlements

Absence of election and income treated as income of settlor: special rules U.K.

510 Sums applied for property maintenance purposes U.K.

(1) This section applies if—

(a) income arises from the heritage maintenance property comprised in a heritage maintenance settlement in a tax year in respect of which no election is made under section 508,

(b) the income is treated under Chapter 5 of Part 5 of ITTOIA 2005 as income of the settlor, and

(c) a sum in excess of the income is applied for a property maintenance purpose in the year.

(2) Any such sum which is so applied in that year, 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.