IFM14444 | Taxation of investment trusts: approval and eligibility requirements: approval requirement: the income distribution requirement: calculation of income

Income means the gross amount of statutory income including income from UK and overseas dividends, computed in accordance with normal taxation principles and before the deduction of income tax, corporation tax and management expenses. This is subject to specific rules within regulation 20 of SI 2011/2999, as follows -

• the amounts to be brought into account under Part 5 of CTA 2009 in respect of the investment trust’s loan relationships are determined without reference to any debtor relationships of the investment trust (this ensures that income from loan relationships is not measured net of interest and other amounts payable); and

• offshore income gains (treated as arising from disposals of interests in offshore non-reporting funds under regulation 18(1) of the Offshore Funds (Tax) Regulations 2009) are ignored because they will be chargeable to tax for the investment trust.