Section 479 | Trustees' accumulated or discretionary income to be charged at special rates

(1)This section applies if—

(a)accumulated or discretionary income arises to the trustees of a settlement, and

(b)the income does not arise under a charitable trust.

(2)Income tax is charged on the income at the rates referred to in this section instead of at the rates which would otherwise apply (for which see Chapter 2 of Part 2 (rates at which income tax is charged)).

(2A)Income tax is charged on the income at the property trust rate so far as the income is property income.

(2B)Income tax is charged on the income at the savings trust rate so far as the income is savings income.

(3)Income tax is charged on the income at the dividend trust rate so far as the income is dividend income.

(4)Otherwise, income tax is charged on the income at the trust rate.

(5)Section 488 disapplies this section in cases relating to Schedule 2 share incentive plans.