TSEM3025 - 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
    2. for the purposes of a FURBS established for the sole purpose of providing relevant benefits within the meaning of Section 612
(see TSEM5200 onwards); or
    1. for the purposes of a personal pension scheme approved under Chapter IV ICTA 1988.