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HMRC internal manual

Trusts, Settlements and Estates Manual

Trust income and gains: vulnerable beneficiaries: claims to special tax treatment

Trustees may make a claim for special tax treatment for any tax year from 2004-05 if:

  • in that tax year they hold property on qualifying trusts for the benefit of a vulnerable person and
  • a vulnerable person election has effect for all or part of that year

The vulnerable person is not a party to the claim. Their consent is provided by the terms of the election.

Where a claim is made for any year it applies to both income tax and CGT, if any. It cannot apply to one and not the other unless the situations in TSEM3461 apply.

There is no scope for a provisional claim. Either a claim is made or it is not.