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HMRC internal manual

Trusts, Settlements and Estates Manual

Trusts for particular purposes: ESC A68 - conditions - years to 2009-2010

Before any compensation is paid under this concession, the trustees must

  • complete a return for the year (and any earlier years in which tax has entered the ‘tax pool’) and self assess
  • pay all tax, including payments on account, without any reduction for anticipated payments under the concession and supply evidence that tax has been paid
  • agree that the ‘tax pool’ should be reduced by the amount to be paid.

As the payment is compensation for the lack of a credit to the employees under ITA/S494(3), do not add repayment supplement to it.