Charge to tax on unit holdersU.K.
15.—(1) Tax is charged on income treated as received by a unit holder from an exempt unauthorised unit trust in the tax year.
(2) For the purposes of this regulation, unit holders are treated as receiving income if an amount is shown in the trust's accounts for a period of account as income available for payment to them or for investment.
(3) The income is treated as received by a unit holder for a distribution period.
(4) To calculate the amount of the income treated as received by a unit holder for a distribution period, calculate the unit holder's share of the trust's available income by applying the formula—
where—
TAI is the total amount shown in the trust's accounts as income available for payment to unit holders or for investment,
R is the unit holder's rights, and
TR is all the unit holders' rights.
(5) The income for a distribution period is treated as received on the date or latest date provided by the terms of the trust for any distribution for the period, unless that date is more than 12 months after it ends.
(6) If—
(a)that date is more than 12 months after the distribution period ends, or
(b)no date is so provided,
the income for the period is treated as received on the last day of the period.
(7) If the terms of the trust provide for a period over which income from the investments subject to the trust is aggregated to ascertain the amount available for distribution to unit holders, the “distribution period” means—
(a)if the period is 12 months or less, that period, or
(b)if the period is more than 12 months, each successive period of 12 months within that period and any remaining period of less than 12 months.
(8) In any other case, the “distribution period” means successive periods of 12 months, the first of which begins with the day on which the trust was established.