Where the owner of an historic house settles property in a
maintenance fund approved under ICTA88/S692 for the upkeep of the
house, the income of the fund will be treated as the owner’s
income under the settlement legislation in ICTA88 Part XV, unless
an election is made under ICTA88/S691. In a particular year, it may
be advantageous not to make such an election.
If the trustees of the fund use the income to reimburse the
owner for expenditure incurred in maintaining the property and the
owner is carrying on a trade of opening the house to the public,
the reimbursement would normally have to be taken into account in
computing the profits of the trade assessable under Case I.
ICTA88/S692 provides that where income of a maintenance fund has
been treated as that of the settlor, any of that income used to
reimburse the settlor will not again be taken into account in the
Case I computation, either as a trading receipt or as reducing the
maintenance expenditure deductible in computing the profits.
