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Double taxation relief

A discretionary payment made by trustees to a beneficiary is treated as the amount of the payment grossed up at the trust rate¹ (see I5.1306).

The beneficiary may claim double taxation relief if the income of the trustees out of which the payment is made includes income in respect of which the trustees are entitled to tax credit for overseas tax (such income is called 'taxed overseas income'²).

The claim by the beneficiary must be supported by a certificate from the trustees:

1. Ìý

   •ÌýÌýÌýÌý that the payment to the beneficiary was made out of or included taxed overseas income

2. Ìý

   •ÌýÌýÌýÌý showing the amount and the source of the taxed overseas income, and

3. Ìý

   •ÌýÌýÌýÌý that the amount arose not earlier than six years before the end of the year of assessment in which the payment was made

The beneficiary may claim relief for foreign