Income Tax (Trading and Other Income) Act 2005 section 622

Person liable

Section 622 identifies who is liable to pay tax on settlement income that is treated as the settlor's income under the settlements legislation in Chapter 5.

• The default rule is that the settlor is the person liable for any tax charged under the settlements legislation.
• Where a close family member of the settlor receives benefits from the settlement, that family member may be liable instead of the settlor under section 643A.
• Where onward gifts are made from settlement benefits, the recipients of those gifts may become liable under sections 643I to 643M.
• The settlor remains liable in all cases unless one of these specific exceptions applies to shift liability to another person.