18.—(1) If the unit holders of an exempt unauthorised unit trust are treated as receiving income under regulation 15(2), the trustees are treated as making a deemed payment of the same amount on the final day of the period of account referred to in regulation 15(2).
(2) The trustees are entitled to relief for a tax year equal to the amount of the deemed payments treated as made in that year.
(3) The relief is given by deducting that amount in calculating the trustees' net income for the tax year (see Step 2 of the calculation in section 23 of ITA 2007 (calculation of income tax liability) M1).
(4) The total amount of the relief for a tax year must not exceed the amount of the trustees' modified net income for the tax year.
(5) If there is an excess, that excess is to be treated as if it were a deemed payment in the basis period for the following tax year.
(6) In this regulation “modified net income” has the meaning given by section 1025 of ITA 2007 but as if for subsection (2)(c) there were substituted—
“(c)any relief to which the person may be entitled under regulation 18 of the Unauthorised Unit Trusts (Tax) Regulations 2013,”.
Modifications etc. (not altering text)
C1Reg. 18 excluded (with effect in accordance with Sch. 18 para. 63 of the amending Act) by Finance Act 2016 (c. 24), Sch. 18 para. 20(15)
Marginal Citations
M1Section 23 was amended by section 5 of and paragraph 6(o)(i) of Schedule 1 to FA 2009.