TSEM4505 - Settlements legislation: certification under ITTOIA/S646(2)
ITTOIA/S624 and 629 treat income as that of the settlor. This can create an additional tax liability for the settlor. »Ê¹ÚÌåÓýapp settlor is entitled to recover this tax from the trustees or other recipient. To do so, the settlor can require a certificate showing such income and the tax paid.
As the trust rate is set at the same level as the additional rate , the tax paid by trustees will in most instances exceed the amount due from the settlor - see TSEM4550.