Income Tax Act 2007 section 499

Application of Chapter

Section 499 sets out when the rules in this Chapter apply to reduce a trust beneficiary's taxable income by reference to the trustees' expenses.

• The Chapter applies where income arises to the trustees of a settlement in a tax year (the current tax year)
• Before the income is distributed, some or all of it must already be treated as the income of another person — the beneficiary
• The beneficiary's share of that undistributed trust income can be reduced for income tax purposes
• The reduction is calculated by reference to expenses properly incurred by the trustees