Section 462 | Overview of Part

(1)This Part sets out special rules about settlements and trustees.

(2)Chapter 2 contains general provision about settlements and trustees, for example, definitions of expressions relating to settlements.

(3)Chapter 3 provides for income tax to be charged at the property trust rate, the savings trust rate or the dividend trust rate or at the trust rate on certain amounts included in the net income of the trustees of a settlement.

(4)Chapter 4 provides—

(a)for expenses of the trustees of a settlement to be set against the trustees' trust rate income (see section 463(2)), and

(b)consequentially, for the amount of the trust rate income to be reduced.

(5)Chapter 5 qualifies section 479 (which is in Chapter 3) in the case of the trustees of a Schedule 2 share incentive plan.

(6)Repealed

(7)Chapter 7 deals with the treatment of payments made by the trustees of a settlement in the exercise of a discretion.This affects the way the trustees and the recipients of such payments are taxed.

(8)Chapter 8 deals with the treatment of expenses of the trustees of a settlement where income arising to the trustees is, before being distributed, the income of a person other than the trustees themselves.This affects the way that other person is taxed on that income.

(9)Repealed

(10)Chapter 10 deals with heritage maintenance settlements.

(11)See also Part 10 for special rules about charitable trusts and section 838A for special provision about asbestos compensation settlements.

(12)See also Chapter 4 of Part 2 of FA 2005 for provision about trusts with vulnerable beneficiaries.