IFM11600 - Investors in a mixed unauthorised unit trust (MUUT) – distributions

Tax is charged on unit holders on income treated as received from a MUUT in the tax year. For this purpose unit holders are treated as receiving income if an amount is shown in the accounts of a MUUT for a period of account as income available for payment to them or for investment. Income is treated as received by a unit holder for a distribution period and in most cases on a date provided for by the terms of the trust deed. A period of account may have one or more distribution periods.

The income for a distribution period is treated as received by a unit holder on the date or last date provided by the terms of the trust deed for any distribution for that period, unless that date is more than 12 months after it ends in which case the income is treated as received on the last day of the distribution period. Where the terms of the trust do not provide a date then income for a distribution period is treated as received on the last day of the distribution period.

Unit holders will be treated as having received income from which a sum representing income tax has been deducted. Unit holders are taxable on a gross amount with relief for the income tax.