Income Tax Act 2007 section 482

Types of amount to be charged at special rates for trustees

Section 482 lists twelve specific types of income or gain arising to trustees that must be taxed at the special trust rates rather than the normal income tax rates.

• The section identifies twelve categories of trustee income — ranging from company share redemption payments and accrued income profits to offshore fund income and life insurance gains — that are subject to the special trust rates set out in section 481.
• Several types cover profits and gains from specific financial instruments, including deeply discounted securities, deposits, futures and options, and foreign dividend coupons.
• Other types capture deemed income from property business receipts, employee share ownership trusts, transactions in land, and arrangements offering a choice between income and capital returns.
• Certain exclusions apply: life insurance gains falling under subsection (7) of section 467, and futures and options gains meeting conditions A to C in section 568, are not caught by these special rate provisions.