Corporation Tax Act 2010 section 611

Income tax provisions to apply in relation to trustees' expenses

Section 611 applies the income tax rules on trustees' expenses to corporation tax, specifically where a corporate beneficiary has an interest in possession in a trust.

• Where a beneficiary is entitled to income as it arises from a trust (an interest in possession), specific rules govern how trustees' expenses reduce that income
• The income tax rules in sections 500 and 503 of ITA 2007 on trustees' expenses apply equally for corporation tax purposes
• It is very rare for a company to be an interest in possession beneficiary of a trust, so the legislation cross-refers to the income tax provisions rather than duplicating them
• Sections 500 and 503 of ITA 2007 codified principles previously derived mainly from trust and tax law, providing statutory guidance on how trustees' expenses affect the measurement of a beneficiary's income