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HMRC internal manual

Trusts, Settlements and Estates Manual

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.