SCHEDULES

SCHEDULE 10Settlements: anti-avoidance etc

PART 2Income tax

ITTOIA 2005

9

In section 636 (amount of unprotected income that is undistributed for section 635 purposes)—

a

in subsection (2) (deducting payments that are or would be taxable as recipients' income)—

i

in the words before paragraph (a) omit “such”,

ii

in those words, for “as” substitute “ that are payments of unprotected income, or sums treated as representing unprotected income, and that ”, and

iii

in paragraph (b), for “so treated” substitute “ treated as mentioned in paragraph (a) ”,

b

in subsection (4) (deducting expenses properly chargeable to income), before “income” insert “ unprotected ”, and

c

in subsection (6) (deducting amounts in respect of exempt income), in the definition of “A”, before “income” insert “ unprotected ”.