Taxes Consolidation Act 1997 Schedule 32, paragraph 21

Income Tax: Relief for Income Accumulated Under Trusts

Paragraph 21 of Schedule 32 provided relief from income tax for a beneficiary on whose behalf trust income was accumulated under a will or settlement, contingent on that person reaching a specified age or marrying.

• Where income from a trust fund was accumulated for a beneficiary contingently on attaining a specified age or marrying, the beneficiary could claim a repayment of income tax paid by the trustees during the accumulation period.
• The claim was available only where the beneficiary's aggregate income — comprising the accumulated trust income, income from any other fund subject to the same accumulation trusts, and the beneficiary's own total income — was low enough to qualify for income tax exemption or relief.
• The beneficiary had to make the claim within six years after the end of the year of assessment in which the contingency (marriage or attainment of the specified age) occurred.
• No claim could be made in respect of income tax paid for any year of assessment after 1972–73, making this provision spent in practice.