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HMRC internal manual

Trusts, Settlements and Estates Manual

From
HM Revenue & Customs
Updated
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Trust income and gains: the charge on trustees: trusts exempt from the special trust rates

Some discretionary trusts are exempt from the special trust rates. The exemption applies to:

  • income arising to a trust established for charitable purposes only
  • income arising to the trustees of flat management company trusts from 2006-07 - see TSEM5750
  • some dividends arising to the trustees of approved profit sharing schemes - see TSEM5410
  • for years to 2005-06 only, income from investments, deposits or other property, held:
    1. for the purposes of a fund or scheme approved under Chapter I Part XIV ICTA 1988 and established for the sole purpose of providing relevant benefits within the meaning of Section 612
      1. for the purposes of a FURBS established for the sole purpose of providing relevant benefits within the meaning of Section 612
(see [TSEM5200](https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem5200) onwards); or
    1. for the purposes of a personal pension scheme approved under Chapter IV ICTA 1988.