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HMRC internal manual

Trusts, Settlements and Estates Manual

Trust income and gains: relief for overseas tax: expenses of discretionary trust

If trustees are claiming relief for overseas tax they will usually regard expenses as paidout of UK income. This means they can certify the overseas income to the beneficiariesunder ICTA88/S809 (TSEM3680).

They may sometimes regard expenses as paid from overseas income. This could be becausethere is not sufficient UK income to cover the expenses. Or maybe certification is notadvantageous to the beneficiary.

Trustees cannot certify, under S809, the overseas income they set against the expenses.