Section 648 | Income arising under a settlement

(1)References in this Chapter to income arising under a settlement include—

(a)any income chargeable to income tax by deduction or otherwise, and

(b)any income which would have been so chargeable if it had been received in the United Kingdom by a person ...resident there.

(2)But if, in a tax year, the settlor is not UK resident, references in this Chapter to income arising under a settlement do not include income arising under the settlement in that tax year in respect of which the settlor, if actually entitled to it, would not be chargeable to income tax by deduction or otherwise because of not being UK resident.

(3)And if, for the tax year 2024-25 or an earlier tax year, section 809B, 809D or 809E of ITA 2007 (remittance basis) applied to the settlor, references in this Chapter to income arising under a settlement include in relation to any specified foreign income arising under the settlement in that tax year only such of it as is remitted to the United Kingdom (in that tax year or any subsequent tax year) in circumstances such that, if the settlor remitted it, the settlor would be chargeable to income tax.

(4)See Chapter A1 of Part 14 of ITA 2007 for the meaning of “remitted to the United Kingdom” etc.

(5)Where subsection (3) applies the remitted income is treated for the purposes of this Chapter as arising under the settlement in the tax year in which it is remitted.

(6)In subsection (3), “specified foreign income” means income that would be relevant foreign income if it were the income of a UK resident individual.