Income Tax (Trading and Other Income) Act 2005 section 643A

Deemed income because of benefits for settlor or close family member

Section 643A treats certain untaxed benefits received from a settlement as taxable income of the settlor or a close family member, up to the amount of available protected income in the settlement.

• Where a UK-resident individual has an untaxed benefits total from a settlement, an amount up to the available protected income is treated as that individual's taxable income for the year
• The section applies to the settlor and anyone who has at any time been a close member of the settlor's family
• Where more than one individual could be treated as having the deemed income, HMRC may allocate it among them in whatever proportions appear just and reasonable
• The deemed income charge only arises to the extent that the untaxed benefits total does not exceed the settlement's available protected income for the relevant tax year