Section 496B — Income Tax Act 2007: Relief for trustees

Relief for trustees 496B 1 The trustees of a settlement are entitled (on making a claim in respect of a tax year) to repayment of an amount of income tax equal to the lesser of amount A and amount B.

2 Amount A is— T E I × T R where— TEI is the total of the amounts that are employment income of beneficiaries of the settlement because of discretionary employment income payments made in the tax year by the trustees, and TR is the trust rate in force for the tax year.

3 Amount B is the amount of the trustees’ tax pool available for the tax year (see section 497) reduced (but not so that is goes below nil) by the total amount of income tax (if any) treated under section 494 as having been paid as a result of payments made by the trustees in the tax year.

4 A claim under this section may not be made before the end of the tax year to which it relates.