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Legislation
Income Tax Act 2007

Chapter 7 Discretionary payments

  • Crossheading Payments constituting income of beneficiary (other than employment income)
  • Section 494 Grossing up of discretionary payment and payment of income tax
  • Section 495 Statement about deduction of income tax
  • Section 496 Income tax charged on trustees
  • Crossheading Payments constituting employment income of beneficiary
  • Crossheading Tax pool
  • Section 498 Types of income tax for the purposes of section 497
  1. Chapter 7 · Discretionary payments
  2. Income tax charged on trustees

Section 496 | Income tax charged on trustees

From legislation.gov.uk

(1)Income tax is charged for a tax year if—

(a)in the tax year the trustees of a settlement make payments as a result of which income tax is treated as having been paid under section 494, and

(b)amount A is greater than amount B.

(2)Amount A is the total amount of the income tax treated under section 494 as having been paid.

(3)Amount B is the amount of the trustees' tax pool available for the tax year (see section 497).

(4)The amount of the tax charged under this section is equal to the difference between amounts A and B.

(5)The trustees are liable for the tax.

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