Income Tax Act 2007

505 Relief for trustees of unauthorised unit trust

(1) This section applies if in a tax year the trustees of an unauthorised unit trust are treated as making a deemed payment.

(2) The trustees are entitled to a relief for the tax year equal to the gross amount of the payment.

(3) The relief is given by deducting that gross amount in calculating the trustees' net income for the tax year (see Step 2 of the calculation in section 23).

(4) But this is subject to subsections (5) to (7) and section 506.

(5) Relief is not to be given for the payment so far as it is ineligible for relief.

(6) For the purpose of determining the extent to which the payment is ineligible for relief (if at all) section 450 applies in relation to the payment as that section applies in relation to a payment to which section 449 applies.

(7) The total amount of the reliefs given under this section to the trustees for the tax year cannot be greater than the amount of the trustees' modified net income for the tax year (see section 1025).

(8) In this section and in section 506 “deemed payment” and “the gross amount” have the meanings given by section 941(6).