Part 14Income tax liability: miscellaneous rules

Chapter 1Limits on liability to income tax of non-UK residents

Limit for non-UK resident individuals, trustees etc

812Case where limit not to apply

1

Section 811 does not apply to income tax to which non-UK resident trustees are liable for a tax year, if there is a beneficiary of the trust who is—

a

an individual who is ordinarily UK resident, or

b

a UK resident company.

2

For the purposes of subsection (1) a person is a beneficiary of the trust if—

a

the person is an actual or potential beneficiary of the trust, and

b

condition A or B is met in relation to the person.

3

Condition A is that the person is, or will or may become, entitled under the trust to receive some or all of any income under the trust.

4

Condition B is that some or all of any income under the trust may be paid to or used for the benefit of the person in the exercise of a discretion conferred by the trust.

5

The references in subsections (3) and (4) to any income under the trust include a reference to any capital under the trust so far as it represents amounts originally received by the trustees as income.