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HMRC internal manual

Trusts, Settlements and Estates Manual

From
HM Revenue & Customs
Updated
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Non-resident trusts: trustees’ chargeability: Income Tax - UK source income - effect of ITA/Ss811-814 - basic considerations

When considering the liability of the trustees of a non-resident trust to UK income tax on UK source income, you need to consider the effects of ITA/S811. Where applicable, the provisions cap the total tax chargeable on trustees of a non-resident trust on the total income of the trust.

From 6 April 2013, S811 will apply if no person who is an actual or potential beneficiary of the non-resident trust is resident in the UK for the year concerned. Prior to 6 April 2013, S811 applied if no person who was an actual or potential beneficiary of the non-resident trust was ordinarily resident in the UK for the year concerned (ITA/S812).

If the trust is not within ITA/S479 (TSEM10260), then the residence status of all the beneficiaries who are absolutely entitled to the income of the trust is to be taken into account.

If the trust is within ITA/S479 (TSEM1565), then the residence status of both capital and income beneficiaries is to be taken into account.