TSEM3036 | Trust income and gains: the charge on trustees - which trustee is chargeable

ICTA88/S685E(1) brings the income tax treatment into line with the CGT treatment in TCGA92/S69 (1).

Trustees of a trust or settlement for both income tax and CGT are treated as a single person and this deemed person is distinct from the actual person (individuals and/or companies) who act as the trustees.

If part of the property compromised in a single trust or settlement is vested in one trustee or one set of trustees and part in another, those trustees are treated as a single body of trustees. This means that from 6 April 2006 the earlier practice of allowing different funds within a trust or settlement to be set up as separate files with their own SA references for income tax purposes will no longer apply unless the trustees have made a sub-fund election (see TSEM3500).