Income Tax Act 2007 section 508

Election by trustees

Section 508 allows the trustees of a heritage maintenance settlement to elect for special income tax treatment for a given tax year, shielding both the settlor and certain other persons from income tax charges that would otherwise arise on trust income and expenditure.

• Trustees of a heritage maintenance settlement may elect, on a year-by-year basis, for this section to apply to a particular tax year
• Where an election is made, income from the heritage maintenance property is no longer treated as the settlor's income — instead it is taxed on the trustees at trust rates
• Sums spent from the trust on property maintenance purposes are not treated as taxable income of the person who benefits from the property or of the settlor under the capital sums rules
• The election must be made on or before the first anniversary of the normal self-assessment filing date for the tax year in question