SCHEDULES

SCHEDULE 13Settlements: amendments to ICTA and ITTOIA 2005 etc

Part 2Minor and consequential amendments

31

1

In ITTOIA 2005—

a

for “trustees of trusts” in each place in sections 417(2) and 420 substitute “ trustees of settlements ”,

b

in section 420(1)(a) and (c) for “trust” substitute “ settlement ”,

c

in the title of section 420 for “trust” substitute “ settlement ”.

2

For section 623 of ITTOIA 2005 (calculation of income) substitute—

623Calculation of income

For the purpose of calculating liability to tax under this Chapter (but for no other purpose), a settlor shall be allowed the same deductions and reliefs as if any amount treated under this Chapter as income of the settlor had actually been received by the settlor.

3

This paragraph shall come into force on 6th April 2006 in respect of settlements whenever created, and in respect of loans or advances whenever made.