Income Tax Act 2007 section 942

Income tax to be collected from trustees

Section 942 establishes how much income tax must be collected from the trustees of an unauthorised unit trust (UUT) and the mechanism through which it is collected.

• Income tax due from UUT trustees is collected through their self-assessment tax return, rather than through any separate charging mechanism.
• The default amount to be collected is the amount treated as having been deducted under section 941, calculated using the formula in section 548(2) of ITTOIA.
• An adjustment applies where the gross amounts of payments treated as made to unit holders exceed the trustees' modified net income in a tax year — the "income pool" adjustment.
• Where the income pool adjustment applies, the income pool at the start of the tax year is deducted from the total amounts treated as paid to unit holders (but not below the trustees' modified net income), and the resulting figure is multiplied by the basic rate of income tax to give the amount payable.