Income Tax (Trading and Other Income) Act 2005 section 547

Charge to tax under Chapter 10

Section 547 establishes that income received by unit holders from certain unauthorised unit trust schemes is subject to income tax.

• Income tax is charged on income received from an unauthorised unit trust scheme where the trustees are UK resident.
• A unit holder is treated as receiving income if an amount appears in the scheme's accounts as income available for payment to unit holders or for investment.
• The charge applies specifically to unauthorised unit trusts, not to authorised unit trust schemes.
• The definition of income received is based on what the scheme's accounts show as available, regardless of whether it is actually paid out to unit holders.