Section 274C | Reduction for accumulated or discretionary trust income: calculation F1
From legislation.gov.uk
15 July 2026
(1)This section applies if for a tax year the trustees of a settlement are entitled to relief under section 274B in respect of a relievable amount or in respect of each of two or more relievable amounts, and in the following subsections of this section “relievable amount” means that relievable amount or (as the case may be) any of those relievable amounts.F1
(2)The amount of the relief in respect of a relievable amount is given by—F1F2F3F4
Formula
where—
PBR is the property basic rate of income tax for the year, and
L is the lower of—
the relievable amount, and
the profits for income tax purposes of the property business concerned for the year after any deduction under section 118 of ITA 2007 (“the adjusted profits”) or, if less, the share of the adjusted profits—
on which the trustees of the settlement are liable for income tax, and
which, in relation to the trustees of the settlement, is accumulated or discretionary income.
(3)Where L in the case of a relievable amount is less than the relievable amount, the difference between them is the brought-forward amount of the trustees of the settlement for the following tax year in respect of the property business concerned.F1