Income Tax (Trading and Other Income) Act 2005 section 628C

Foreign income arising before, but remitted on or after, 6 April 2017

Section 628C deals with how the remittance basis rules apply to certain trust income that arose during the years 2008-09 to 2016-17 but was not remitted to the UK until on or after 6 April 2017, and in particular excludes settlement trustees from the definition of "relevant person" for these purposes.

• When applying the rules on what counts as income "remitted to the UK" to transitional trust income, the trustees of the settlement are not treated as a "relevant person"
• Transitional trust income is foreign-source income arising from a settlement during the tax years 2008-09 to 2016-17 (the "protection period") that would qualify as protected foreign-source income if the relevant protective conditions had been in place throughout that period
• The income must not have been distributed by the trustees or treated as the settlor's income before 6 April 2017, but would have been treated as the settlor's income in the year it arose had the settlor been UK-domiciled at that time
• The rules that treat relevant foreign income as arising from a settlement only when remitted to the UK do not apply when determining whether income falls within the definition of transitional trust income