Income Tax (Trading and Other Income) Act 2005 section 458

Non-UK resident trustees

Section 458 exempts non-UK resident trustees of a settlement from income tax on profits and gains arising from the disposal of deeply discounted securities, and disapplies certain loss relief provisions where this exemption applies.

• Where trustees of a settlement are non-UK resident, no income tax is charged on their disposals of deeply discounted securities under this Chapter.
• Because the profits are exempt, the corresponding loss relief provisions also do not apply — trustees cannot claim relief for losses on strips of government securities or on listed securities held since 26 March 2003.
• The term "settlement" takes its meaning from the settlements legislation in Chapter 5 of Part 5 of the Act, which covers arrangements where income may be treated as that of the settlor.
• The effect is a complete exclusion of non-UK resident trustees from both the charge to tax and the related loss reliefs on deeply discounted securities.