TSEM3025 | Trust income and gains: the charge on trustees: trusts exempt from the special trust rates

Some discretionary trusts are exempt from the special trust rates. The exemption applies to:

• income arising to a trust established for charitable purposes only

• income arising to the trustees of flat management company trusts from 2006-07 - see TSEM5750

• some dividends arising to the trustees of approved profit sharing schemes - see TSEM5410

• for years to 2005-06 only, income from investments, deposits or other property, held:

1. 1. for the purposes of a fund or scheme approved under Chapter I Part XIV ICTA 1988 and established for the sole purpose of providing relevant benefits within the meaning of Section 612

   2. for the purposes of a FURBS established for the sole purpose of providing relevant benefits within the meaning of Section 612

(see TSEM5200 onwards); or

1. 3. for the purposes of a personal pension scheme approved under Chapter IV ICTA 1988.