TSEM1455 - Introduction to trusts: new trusts: trustees’ residence for income tax purposes: periods up to 5 April 2007

FA89/S110

All trustees are resident in the United Kingdom

The trustees are resident in the UK for income tax purposes.

All trustees are resident outside the UK

The trustees are not resident in the UK for income tax purposes.

Trustees who are all resident in the UK change to trustees who are all not resident

The trustees are resident in the UK for income tax purposes for the part of the year that resident trustees were in office. They are not resident for income tax purposes for the rest of the year.

Trustees who are all not resident in the UK change to trustees who are all resident

The trustees are not resident in the UK for income tax purposes for the part of the year that non-resident trustees were in office. They are resident for income tax purposes for the rest of the year.

There is a mixture of resident and non-resident trustees acting at the same time

The trustees are resident in the UK unless the settlor was:

• not resident in the UK and
• not ordinarily resident in the UK and
• not domiciled in the UK

when the settlement was set up and when any later funds were added. If the settlor meets all the conditions the trustees are not resident in the UK for income tax purposes.