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TSEM10235 | Non-resident trusts: trustees’ chargeability: Income Tax - accumulation and discretionary trusts

From HM Revenue & Customs · Trusts, Settlements and Estates Manual

If the trustees of a non-resident trust have power to:

  • accumulate income or

  • pay income at their discretion or

  • accumulate income and pay income at their discretion

then the amount of UK-source income on which the trustees are chargeable to tax is charged at special rates under ITA07/S479.

The trustees are also taxable at the special trust rates on certain receipts that are deemed to be income under ITA07/Ss481-482 - see TSEM3201.

See TSEM3041 for trust tax rates