TSEM10235 - Non-resident trusts: trustees’ chargeability: Income Tax - accumulation and discretionary trusts

If the trustees of a non-resident trust have power to:

• accumulate income or
• pay income at their discretion or
• accumulate income and pay income at their discretion

then the amount of UK source income on which the trustees are chargeable to tax is charged at special rates under ITA/S479.

The trustees are also taxable at the special trust rates on certain receipts that are deemed to be income under ITA/Ss481-482 - see TSEM3201.

See TSEM3041 for trust tax rates