Income Tax Act 2007 section 475

Residence of trustees

Section 475 sets out the rules for determining whether the trustees of a settlement, treated as a single person for income tax purposes, are considered UK resident or non-UK resident.

• The trustees (as a single person) are UK resident if all trustees are UK resident (Condition A) or if there is a mix of UK and non-UK resident trustees and a relevant settlor meets Condition C (Condition B)
• If neither Condition A nor Condition B is met, the trustees as a single person are treated as non-UK resident
• A trustee who acts in the course of a business carried on in the UK through a branch, agency or permanent establishment is treated as UK resident for these purposes, regardless of their actual residence status
• Where a trustee joins or leaves during a split year and serves only during the overseas part of that year, they are treated as non-UK resident — unless they act through a UK business presence