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HMRC internal manual

Trusts, Settlements and Estates Manual

Trust income and gains: beneficiaries: payment from trust capital - exceptions to normal rule

There are certain circumstances in which payments from trust capital are treated as income of the beneficiary. They are:

  • express gift of an annuity (TSEM3784)
  • payments to supplement or augment an income interest (TSEM3785)
  • compensation for loss of income (where beneficiary entitled to compensation) (TSEM3786)