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
”
.