TSEM3325 - Trust income and gains: do AIS provisions apply to trustee or beneficiary?
ICTA88/S714 (5) & ICTA88/S720 (5)
Accrued Income Scheme charge
If trustees (other than bare trustee - TSEM3320) transfer securities, any Accrued Income Scheme charge is that of the trustees. The trustees are chargeable at the trust rate, under ITA/Sections 481 and 482.
The transfer of securities does not form the income of any beneficiary. The trustee must not include it on the Trust and Estate Return as the income of a beneficiary.
Accrued Income Scheme allowance
The treatment of the allowance depends on who received the income against which relief is due. If the trustees received the income, they are entitled to the relief. The trustees may have mandated the income to a beneficiary. The beneficiary should claim the allowance against the income.
