Income Tax (Trading and Other Income) Act 2005 section 630A

Exception for protected foreign-source income

Section 630A provides an exception to the rule that treats settlement income paid to a settlor's minor children as the settlor's own income, where that income qualifies as protected foreign-source income.

• Income arising under a settlement is not treated as the settlor's income under section 629(1) if it is protected foreign-source income in the relevant tax year
• The definition of protected foreign-source income follows the same rules set out in sections 628A(2) to (12) and 628B
• The normal remittance basis rules for relevant foreign income under section 648(3) to (5) do not apply for the purposes of this exception
• This exception applies specifically in the context of income paid to or for the benefit of the settlor's unmarried minor children