I5.1125 Settlor interested trusts—the general rule
The general rule is that income arising under a settlement (see I5.1123) during the life of the settlor is treated as income of the settlor (and of no other person) if it arises from property in which the settlor has an interest1. If the settlement is a trust, expenses of the trustees (see I5.1005 and I5.1010) are not used to reduce the income of the settlor2.
The rule is designed to prevent a person passing income, by means of a settlement, to another person who is not liable to tax
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 17:17