Section 475 — Income Tax Act 2007: Residence of trustees

Residence of trustees 475 1 This section applies for income tax purposes and explains how to work out, in relation to the trustees of a settlement, whether or not the single person mentioned in section 474(1) is UK resident.

2 If at a time either condition A or condition B is met, then at that time the single person is UK resident .

3 If at a time neither condition A nor condition B is met, then at that time the single person is non-UK resident .

4 Condition A is met at a time if, at that time, all the persons who are trustees of the settlement are UK resident.

5 Condition B is met at a time if at that time—

a at least one person who is a trustee of the settlement is UK resident and at least one such person is non-UK resident, and b a settlor in relation to the settlement meets condition C (see section 476).

6 If at a time a person (“T”) who is a trustee of the settlement acts as trustee in the course of a business which T carries on in the United Kingdom through a branch, agency or permanent establishment there, then for the purposes of subsections (4) and (5) assume that T is UK resident at that time.

7 Subsection (8) applies if—

a an individual becomes or ceases to be a trustee of the settlement during a tax year, b that year is a split year as respects the individual, and c the only period in that year when the individual is a trustee of the settlement falls wholly within the overseas part of the year.

8 The individual is to be treated for the purposes of subsections (4) and (5) as if he or she had been non-UK resident for the year (and hence for the period in that year when he or she was a trustee of the settlement).

9 But subsection (8) is subject to subsection (6) and, accordingly, an individual who is treated under subsection (8) as having been non-UK resident is, in spite of that, to be treated as UK resident whenever the individual acts as mentioned in subsection (6).