Income Tax (Trading and Other Income) Act 2005 section 619

Charge to tax under Chapter 5

Section 619 establishes the income tax charge on income and capital sums that are treated as belonging to the settlor (or close family members) under the settlements anti-avoidance rules in Chapter 5.

• Income tax is charged where settlement income is attributed to the settlor because the settlor has retained an interest in the settlement, or because income is paid to the settlor's minor children
• Income tax is also charged where capital sums paid to the settlor by the settlement trustees, or by a body connected with the settlement, are treated as the settlor's income
• Benefits provided out of protected foreign-source income or transitional trust income that are treated as income of the settlor or a close family member are likewise charged to income tax
• Where another person's income is treated as the settlor's, it is taxed at the rates and under the rules that would have applied had the income arisen directly to the settlor