Section 481 — Income Tax Act 2007: Other amounts to be charged at special rates for trustees

Other amounts to be charged at special rates for trustees 481 1 This section applies if—

a the trustees of a settlement are liable for income tax on an amount of a type set out in section 482, b the trustees are not trustees of a unit trust scheme, and c the amount is not income arising under a charitable trust .

2 Income tax is charged on the amount at one of the rates referred to in this section instead of at the rate which would otherwise apply (for which see Chapter 2 of Part 2 (rates at which income tax is charged)). This is subject to subsection (5).

3 If the amount is within Type 1 or Type 12 as set out in section 482, income tax is charged on the amount at the dividend trust rate. 3A If the amount is within Type 2, 6 or 7 as set out in section 482, income tax is charged on the amount at the savings trust rate. 3B If the amount is within Type 5 as set out in section 482, income tax is charged on the amount at the property trust rate.

4 Otherwise, income tax is charged on the amount at the trust rate.

5 Income tax is not to be charged as mentioned in subsection (2) so far as the amount—

a is accumulated or discretionary income, b would be accumulated or discretionary income apart from section 480(3)(a) or (c), or c is income from property within subsection (6).

6 Property is within this subsection if it is held for the purposes of a superannuation fund to which section 615(3) of ICTA (superannuation funds relating to undertakings outside the UK) applies.