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HMRC internal manual

Trusts, Settlements and Estates Manual

Non-resident trusts: settlor’s chargeability: Income Tax - minor unmarried child - credit for tax paid - Extra Statutory Concession A93

The precise text of the concession is at ESC A93 External users can find this guidance at

Under ESC A93, if certain conditions are met (TSEM10325) the settlor is able to claim credit against his or her liability to income tax in respect of the payment to the child, for tax paid by the trustees, as if the payment was from a UK resident trust.

For this purpose the payment is treated as having been made rateably out of all sources of income which arose to the trustees not earlier than six years before the end of the year in which the payment is made, on a last in first out basis.

Credit is given to the settlor for tax paid by the trustees on the particular sources of income, and is taken into account in calculating the gross income treated as taxable on the settlor under the concession.

No credit is given for UK tax treated as paid on income received by trustees which would not go in to the ‘tax pool’ (TSEM3020) if ITA/S494 applied, for example tax at the dividend ordinary rate (see TSEM3021). Although that tax is not repayable, it is not taken into account in calculating the gross income of the settlor referred to in the previous paragraph.

Time limit: a settlor must claim relief under Extra Statutory Concession A93 within five years and ten months of the end of the tax year in which the payment was made. Any claim to relief is to be made by the settlor to HMRC. The claim is a stand-alone claim and does not affect the amount of the payment included, for example, in any self assessment computation by the settlor. Trusts & Estates Nottingham will deal with such claims (TSEM10330).