Income Tax Act 2007 section 507

Overview of Chapter

Section 507 introduces the Chapter dealing with the income tax treatment of heritage maintenance settlements — trusts set up to maintain historic buildings and similar qualifying properties — and defines the key terms used throughout the Chapter.

• A heritage maintenance settlement is a trust containing property subject to a direction under Schedule 4 to the Inheritance Tax Act 1984, established for the upkeep of historic buildings and similar assets.
• Key definitions include "heritage body" (an organisation or charity dedicated to maintaining historic properties), "heritage direction", "heritage maintenance property", "heritage maintenance settlement", and "property maintenance purpose".
• Where a settlement contains both heritage maintenance property and other property, the two categories are treated as if they were held in separate settlements for a number of specified purposes.
• This separate settlements treatment applies for the trust income tax rules in Chapters 2 to 8 of this Part, for certain trade loss relief provisions, and for the rules that assess income on the settlor under Chapter 5 of Part 5 of ITTOIA 2005.