Trusts for particular purposes: ESC A68 - the amount of the compensation - years to 2009-2010
The effect of this concession is to relieve partially the double charge described at TSEM5600, by paying to the trustees a sum in compensation. For any year, the amount payable to trustees is the lesser of
- tax at the trust rate on the total payments which are treated as employment income, and
- tax in the Section 497 tax pool.
To see how to calculate the relief, refer to
- TSEM5615 for example with savings income
- TSEM5620 for example with dividend income.