TSEM4575 - Settlements legislation: how settlor returns income

The settlor returns all UK source trust income, without deducting management expenses, on the SA107 Trusts etc pages.

Foreign source income goes on the Foreign pages.

Credit for tax paid by the trustees 

The settlor receives credit for the tax paid by the trustees on any trust income deemed to be theirs. Trustees can use form R185 (Settlor) to inform the settlor of the income to be treated as that of the settlor and the tax paid on that income.