Section 496 — Income Tax Act 2007: Income tax charged on trustees

Income tax charged on trustees 496 1 Income tax is charged for a tax year if—

a in the tax year the trustees of a settlement make payments as a result of which income tax is treated as having been paid under section 494, and b amount A is greater than amount B.

2 Amount A is the total amount of the income tax treated under section 494 as having been paid.

3 Amount B is the amount of the trustees' tax pool available for the tax year (see section 497).

4 The amount of the tax charged under this section is equal to the difference between amounts A and B.

5 The trustees are liable for the tax.