TSEM9320 - Ownership and income tax: introduction: income tax principles - exceptions to 鈥榬eceiving or entitled to鈥�
皇冠体育appre are two exceptions to the 鈥榬eceiving or entitled to鈥� principle described in TSEM9310.
Settlements legislation
皇冠体育app legislation at Chapter 5 Part 5 ITTOIA at ITTOIA/S624 provides that where the settlor retains an interest in a settlement, he or she is taxable on the income arising under the settlement. Settlement is defined broadly to include, 鈥榓ny disposition, trust, covenant, agreement, arrangement or transfer of assets鈥�. A settlor retains an interest if there are circumstances in which the settlor, and/or a spouse or civil partner of the settlor may benefit from the property and/or income of the settlement.
皇冠体育app legislation applies to tax the settlor on the income of the settlement even if the settlor does not receive the income and is not entitled to it. See TSEM4120 onwards.
Jointly held property - married couples and civil partners
ITA/S836 provides that where a married couple or civil partners living together hold property in their joint names, they are treated for income tax purposes as beneficially entitled to the income in equal shares. 皇冠体育app consequence is that they are taxable in equal shares.
S836 applies regardless of the actual receipt or entitlement position of the married couple or civil partners. 皇冠体育app couple can however ask to be taxed on their actual entitlement in certain circumstances. See TSEM9800.