Section 873 Discretionary or accumulation settlements

United Kingdom

(1)

A settlement is a discretionary or accumulation settlement for the purposes of this Chapter if any income arising to the trustees would (unless treated as income of the settlor) be to any extent income within subsection (2) for the tax year in which it arises.

(2)

Income is within this subsection so far as it is—

(a)

accumulated or discretionary income as defined in section 480 (other than income arising under a F1charitable trust or an unauthorised unit trust in relation to which F2regulation 12 of the Unauthorised Unit Trusts (Tax) Regulations 2013 applies), or

(b)

an amount of a type set out in section 482 (unless the trust is a unit trust scheme or the amount is income arising under a F3charitable trust or is excluded by section 481(5)).

F4(3)

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(4)

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(5)

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(6)

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Annotations

Textual amendments

F1: Words in s. 873(2)(a) substituted (8.3.2012) (with effect in accordance with art. 17 of the commencing S.I.) by Finance Act 2010 (c. 13), Sch. 6 paras. 23(5), 34(2); S.I. 2012/736, art. 17
F2: Words in s. 873(2)(a) substituted (6.4.2014) by The Unauthorised Unit Trusts (Tax) Regulations 2013 (S.I. 2013/2819), regs. 1(3), 37(12) (with reg. 32)
F3: Words in s. 873(2)(b) substituted (8.3.2012) (with effect in accordance with art. 17 of the commencing S.I.) by Finance Act 2010 (c. 13), Sch. 6 paras. 23(5), 34(2); S.I. 2012/736, art. 17
F4: S. 873(3)-(6) omitted (with effect in accordance with Sch. 6 para. 28 of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 6 para. 18

Notes on Part 15

Modifications

C1: Pt. 15 modified (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), ss. 551(4), 1329(1) (with Pts. 1, 2, Sch. 2 para. 78)

Notes on Chapter 2

Textual amendments

F1: Pt. 15 Ch. 2 heading substituted (with effect in accordance with Sch. 6 para. 28 of the amending Act) by Finance Act 2016 (c. 24), Sch. 6 para. 4