Related Commentary  Related HMRC Manuals

493(1)  Sections 494 and 495 apply for income tax purposes if–

(a)in a tax year the trustees of a settlement make an annual payment to a person (“the beneficiary” ) in the exercise of a discretion (whether exercisable by the trustees or any other person),

(b)the trustees are UK resident for the tax year, and

(c)condition A or condition B is met.

493(2)  Condition A is that what is paid to the beneficiary is, only because of the payment, income of the beneficiary for income tax or corporation tax purposes.

Income”  does not include employment income.

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