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HMRC internal manual

Trusts, Settlements and Estates Manual

From
HM Revenue & Customs
Updated
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Introduction to trusts: legal background - tax law: trust tax legislation

The guidance in TSEM1002+, 3000+, 5000+ and 8000+ of this manual deals largely with the Income Tax liability of trustees and beneficiaries. Up to 5 April 2007, most of the Income Tax legislation relating to trustees and beneficiaries was in ICTA88/Sections 685A to 694. This legislation was rewritten as part of the Tax Law Rewrite programme. From 6 April 2007, the legislation is in Income Tax Act 2007, also known as ITA. So

  • for tax years up to 2006-07 ICTA 1988 applies
  • for tax years from 2007-08 ITA applies

The guidance in TSEM1002+, 3000+, 5000+ and 8000+ of this manual refers to ITA but in substance applies equally to the previous legislation in ICTA 1988.

Using legislation

You should refer to ITA generally, and specifically when dealing with tax years from 2007-08. But where you are dealing with tax years up to 2006-07 you should use the ICTA 1988 legislation.

Here is a table of destinations (Word 112KB), showing where the specific parts of the legislation relating to trustees and beneficiaries in ICTA 1988 are rewritten in ITA. Use this table if you need to convert any legislation in ICTA88/Sections 685A to 694 into its equivalent in ITA.

Here is a table of origins (Word 152KB), showing where the specific parts of the legislation relating to trustees and beneficiaries in ITA derive from in ICTA 1988. Use this table if you need to convert any legislation in ITA/Sections 462 to 517 into its equivalent in ICTA 1988.