Income Tax Act 2007 section 505

Relief for trustees of unauthorised unit trust

Section 505 provides income tax relief to the trustees of an unauthorised unit trust for payments they are treated as making to unit holders.

• Trustees of an unauthorised unit trust can claim relief for payments treated as made to unit holders under the deemed payment rules.
• The relief is given as a deduction when calculating the trustees' net income for the tax year.
• The amount of relief is capped and cannot exceed the trustees' modified net income for the relevant tax year.
• The relief is further limited by rules preventing deductions from exceeding the income against which they are set.