Taxes Consolidation Act 1997 section 791

Income under revocable dispositions

Section 791 provides that a revocable disposition of income is not effective for income tax purposes, so that the income remains taxable on the person who made the disposition.

• A "disposition" is broadly defined to include any trust, covenant, agreement or arrangement.
• Where the person who made the disposition retains power to revoke it or reclaim the income, the income is deemed to remain that person's income for income tax purposes.
• A power exercisable jointly with the person's spouse or civil partner is treated as exercisable without consent, unless the couple are living apart by agreement or court order.
• A power exercisable by the spouse or civil partner of the person who made the disposition is treated as exercisable by that person directly.