Income Tax Act 2007 section 462

Overview of Part

Section 462 introduces Part 9 of the Income Tax Act 2007, which sets out the special income tax rules that apply to settlements and their trustees, organised across several chapters covering definitions, tax rates, expenses, discretionary payments, and specific types of trust.

• Part 9 contains special rules on how settlements and trustees are taxed, with Chapter 2 providing key definitions and Chapter 3 setting out the dividend trust rate and trust rate applicable to certain trustee income
• Chapter 4 allows trustees' expenses to be set against trust rate income, thereby reducing the amount charged at the higher rates, while Chapter 5 modifies these charging rules for trustees of Schedule 2 share incentive plans
• Chapter 7 deals with the tax treatment of discretionary payments made by trustees (affecting both trustees and recipients), and Chapter 8 addresses how trustee expenses are handled when the income belongs to someone other than the trustees before distribution
• Chapter 10 covers heritage maintenance settlements, with further rules for charitable trusts in Part 10, asbestos compensation settlements in section 838A, and trusts with vulnerable beneficiaries in Chapter 4 of Part 2 of the Finance Act 2005