Trusts, Settlements and Estates Manual

TSEM1101 - Introduction to trusts: legal background - tax law: trust tax legislation

The guidance in TSEM1002+, 3000+, 5000+ and 8000+ of this manual deals largely with the Income Tax liability of trustees and beneficiaries. Up to 5 April 2007, most of the Income Tax legislation relating to trustees and beneficiaries was in Income and Corporation Taxes Act 1988 (ICTA 1988) sections 685A to 694. This legislation was rewritten as part of the Tax Law Rewrite programme. From 6 April 2007, the legislation is in Income Tax Act 2007 (ITA 2007).

For tax years up to 2006 to 2007:

• ICTA 1988 applies

For tax years from 2007 to 2008:

• ITA 2007 applies

The guidance in TSEM1002+, 3000+, 5000+ and 8000+ of this manual refers to ITA 2007 but in substance applies equally to the previous legislation in ICTA 1988.

Using legislation

You should refer to ITA 2007 generally, and specifically when dealing with tax years from 2007 to 2008. Where you are dealing with tax years up to 2006 to 2007 you should use the ICTA 1988 legislation.

For detailed tables, see:

• TSEM1150 - 'table of destinations' (shows where the specific parts of the legislation relating to trustees and beneficiaries in ICTA 1988 are rewritten in ITA 2007)
• TSEM1155 - 'table of origins' (shows where the specific parts of the legislation relating to trustees and beneficiaries in ITA 2007 derive from in ICTA 1988)