Section 812 — Income Tax Act 2007: Case where limit not to apply

Case where limit not to apply 812 1 Section 811 does not apply to income tax to which non-UK resident trustees are liable for a tax year, if there is a beneficiary of the trust who is—

a an individual who is ... UK resident, or b a UK resident company.

2 For the purposes of subsection (1) a person is a beneficiary of the trust if—

a the person is an actual or potential beneficiary of the trust, and b condition A or B is met in relation to the person.

3 Condition A is that the person is, or will or may become, entitled under the trust to receive some or all of any income under the trust.

4 Condition B is that some or all of any income under the trust may be paid to or used for the benefit of the person in the exercise of a discretion conferred by the trust.

5 The references in subsections (3) and (4) to any income under the trust include a reference to any capital under the trust so far as it represents amounts originally received by the trustees as income.