TSEM4207 - Settlement legislation: settlor retains an interest - exceptions - gifts to charities
ITTOIA/S628
The rule that where the settlor has retained an interest in property in a settlement the income arising is treated as the settlor鈥檚 income for all tax purposes (TSEM4200) does not apply to qualifying income which arises under a UK settlement if
- it is given by the trustees to a charity in the tax year in which it arises, or
- it is income to which a charity is entitled under the terms of the trust.
鈥楺ualifying income鈥� is defined in the legislation.
A UK settlement for this purpose means a settlement where the trustees are UK resident.