Income Tax Act 2007 section 474

Trustees of settlement to be treated as a single and distinct person

Section 474 establishes that the trustees of a settlement are collectively treated as a single person for income tax purposes, distinct from the individual trustees who may hold office from time to time.

• For income tax purposes, trustees of a settlement are treated as a single person, separate from the individuals who serve as trustees at any given time
• Where different parts of the settled property are held by different groups of trustees, all groups are treated as one single body
• This unified treatment extends to cases under the Settled Land Act 1925, where land is vested in the tenant for life and capital investments are held by separate trustees
• This rule is particularly important for determining the residence status of trustees for income tax purposes