Paragraph 35

(1)

FA 2005 shall be amended as follows.

(2)

In the following provisions for “trustees” substitute “ the trustees of a settlement ”

(a)

section 23(1)(a) and (b) (vulnerable persons: introduction),

(b)

section 24(1) (vulnerable persons: claims),

(c)

section 25(1)(a) (qualifying trusts: income tax), and

(d)

section 37(1) (vulnerable person election).

(3)

In section 25(3)—

(a)

for “section 660G(1) and (2) of ICTA” substitute “ section 620(1) of ITTOIA 2005 ”, and

(b)

for “section 660A of that Act” substitute “ sections 624 and 625 of that Act. ”.

(4)

In section 27(2)(b) (qualifying expenses) for “total income” substitute “ income ”.

(5)

Section 42(5)(b) shall cease to have effect.

(6)

In section 43(4) (penalties) for the first reference to “trustees” substitute “ the trustees of a settlement ”.

(7)

This paragraph shall come into force on 6th April 2006.