Where the settlor of a non-resident discretionary trust is not
excluded from benefit under the trust, the trust may be subject to
the provisions of ICTA88/S660. In this situation the trust may be
described as a ‘caught settlement’. The settlor will be
chargeable on the income of the trust as their own personal income,
regardless of whether the income is accumulated or distributed.
Where we have a claim or application from a beneficiary of a
discretionary trust from which the settlor is not excluded from
benefiting, Technical Advice Group will need to refer the papers to
CAR Residency in Bootle for advice. They will also consider whether
the settlor or the trustees need to make a UK tax return.
If the settlement is caught, a claim by a beneficiary will
not be valid.
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
