Section 624 Income where settlor retains an interest

United Kingdom

(1)

Income which arises under a settlement is treated for income tax purposes as the income of the settlor and of the settlor alone if it arises—

(a)

during the life of the settlor, and

(b)

from property in which the settlor has an interest.

F1(1A)

If the settlement is a trust, expenses of the trustees are not to be used to reduce the income of the settlor.

(2)

For more on a settlor having an interest in property, see section 625.

(3)

For exceptions to the rule in subsection (1), see—

Annotations

F1: S. 624(1A) inserted (6.4.2007 with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1027, 1034, Sch. 1 para. 553 (with transitional provisions and savings in Sch. 2)
F2: Words in s. 624(3) inserted (5.12.2005) by The Tax and Civil Partnership Regulations 2005 (S.I. 2005/3229), reg. 187
F3: Word in s. 624(3) inserted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), Sch. 12 paras. 4(a), 70(1)
F4: Words in s. 624(3) omitted (16.11.2017) (with effect in accordance with Sch. 8 para. 39 of the amending Act) by virtue of Finance (No. 2) Act 2017 (c. 32), Sch. 8 para. 21(a)
F5: Words in s. 624(3) omitted (for the tax year 2025-26 and subsequent tax years) by virtue of Finance Act 2025 (c. 8), Sch. 12 paras. 4(b), 70(1)

F1: Words in Pt. 5 Ch. 5 heading inserted (with effect in accordance with Sch. 10 para. 21 of the amending Act) by Finance Act 2018 (c. 3), Sch. 10 para. 3(2)