New queries, issue 4385

Trust income type

According to ITTOIA 2005 s 624 income which arises under a settlement is treated as income of the settlor if it arises from property in which the settlor has an interest.

ITTOIA 2005 s 625 states that a settlor is treated as having such an interest if there are any circumstances in which the property is payable to the settlor.

I am dealing with a discretionary trust which on the above analysis is settlor interested.

There is a class of beneficiaries but in practice the only payments made are for the benefit of the disabled settlor the funds having come from a medical negligence claim for injuries sustained by him.

I am trying to complete the 2012 trust tax return but am getting myself tied in knots trying to reconcile the legislation and the information contained in...