Income Tax (Trading and Other Income) Act 2005 section 133

Amounts treated as income of settlor: income paid to unmarried minor children of settlor

Section 133 provides transitional rules for settlements made before 9 March 1999, modifying how income paid to a settlor's unmarried minor children is treated for tax purposes under section 629.

• For settlements made before 9 March 1999 where the income does not derive from funds added on or after that date, section 629 applies in a modified form — specifically, the requirement in section 629(1)(b) is removed
• Where only pre-9 March 1999 settlement income is involved, a £100 de minimis threshold applies: if the total income paid to or for the benefit of a settlor's child does not exceed £100 in a tax year, it is not treated as the settlor's income
• Where both pre-9 March 1999 settlement income and other settlement income arise in the same tax year, a modified definition of "relevant settlement income" applies, distinguishing between income paid to the child and income otherwise treated as the child's income
• Any apportionment needed to determine whether income derives from funds provided before or after 9 March 1999 must be made on a just and reasonable basis

---