Income Tax (Trading and Other Income) Act 2005 section 645

Property or income originating from settlor

Section 645 defines what counts as property or income "originating from a settlor" for the purposes of the settlements legislation, ensuring that the correct settlor is taxed on the correct share of settlement income where there are multiple settlors or mixed property.

• Property originating from a settlor includes anything the settlor provided directly or indirectly for the settlement, any property that now represents what was originally provided, and a just and reasonable share of any mixed property
• Income originating from a settlor means income arising from that settlor's property within the settlement, plus any income the settlor has provided directly or indirectly
• Where the same property has been provided by more than one settlor, a just and reasonable apportionment determines each settlor's share
• Reciprocal arrangements are caught: if someone else provides property under a reciprocal deal with the settlor, it counts as the settlor's, but property the settlor provides under a reciprocal deal with someone else does not count as the settlor's