Income Tax (Trading and Other Income) Act 2005 section 644

Application to settlements by two or more settlors

Section 644 explains how the settlement income rules in Chapter 5 apply where a settlement has been created by more than one settlor, ensuring that each settlor is only accountable for the property and income they personally contributed.

• Where a settlement has multiple settlors, each settlor is treated separately as if they were the only settlor
• References to settlement property and income are restricted to property and income originating from the particular settlor in question
• For the rules on income paid to a settlor's minor children (sections 629, 631 and 632), only income and payments originating from that settlor are taken into account
• Section 645 provides the detailed definition of what constitutes property or income "originating from" a particular settlor