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HMRC internal manual

Trusts, Settlements and Estates Manual

Trust income and gains: relief for overseas tax - trustee's certificate of overseas taxed income

ICTA88/S809 (1)(b)

The income of a discretionary or accumulation trust may include overseas taxed income.The trustees can certify that discretionary payments they made to beneficiaries includedincome from the taxed overseas sources. The certificate must state how much of the paymentrefers to the overseas income. Trustees issue the certificates under the provisions ofICTA88/S809 (1)(b). There is no prescribed wording for the certificate.

Limits of the amounts certified

The trustees must ensure that:

  • the amounts they certify do not exceed the gross equivalent of the payments they made
  • the gross amounts they certify do not exceed, in the aggregate, the gross income they received.

Trustees can accumulate, for future certification, overseas income that they have notpaid out. Income ceases to be available for certification six years after the start of thetax year in which it arose.