Trust management expenses: settlor-interested trusts: general
Income arising under a settlement where the settlor or the settlor’s spouse or civil partner retains an interest is deemed to be the settlor’s (ITTOIA/S624). This applies to both accumulation/discretionary trusts and IIP trusts.
Section TSEM8520 explains the TMEs position in settlor-interested IIP trusts.
See also TSEM8615 about partly settlor-interested trusts.