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 HMRC’s toolkit...