TSEM4505 - Settlements legislation: certification under ITTOIA/S646(2)

ITTOIA/S624 and 629 treat income as that of the settlor. This can create an additional tax liability for the settlor. The settlor is entitled to recover this tax from the trustees or other recipient. To do so, the settlor can require a certificate showing such income and the tax paid.

As the trust rate is set at the same level as the additional rate , the tax paid by trustees will in most instances exceed the amount due from the settlor - see TSEM4550.