TSEM8250 - Trust management expenses: accumulation/discretionary trusts: order of set-off
ITA/S486(1) provides the order in which expenses are to be set against income. Allowable TMEs are set against income chargeable to the special rates of tax in ITA/S479 in this order:
- against dividend income of the type specified in ITA/S486(2) for example dividends and stock dividends from UK resident companies,etc, then
- any excess against other dividend income not within S486(2), then
- any excess against savings income, finally
- any excess against other income.
See example in TSEM8255.