LLM5090 - Names: income from ancillary trust funds (바카라 사이트˜ATFs바카라 사이트™): taxed income
Certain items of ATF income are generally paid to the Name under deduction of tax (such as bank interest), with tax credits attached (for example dividends) or 바카라 사이트˜notional바카라 사이트™ tax (for example scrip dividends). The net amount received by the Name plus the amount of tax deducted, tax credit or notional tax is included in the taxable trade income. Credit is then given for tax deducted from interest and for tax credits attached to dividends against income tax due for the tax year the interest or dividends fall to be included in Lloyd바카라 사이트™s trade profits (which may not be the same tax year in which the dividend or interest is paid). From 6 April 1999, tax credits arising from dividends, including notional tax on scrip dividends, are 바카라 사이트˜ring-fenced바카라 사이트™ and can only be set against Lloyd바카라 사이트™s trade income.
If the amount of tax due from the Name for the year is less than the tax deducted from interest any excess may be repaid in the normal way. Tax credits attached to dividends are not repayable after 6 April 1999.
Repayment may not be claimed until the Lloyd바카라 사이트™s trade profit or loss for the year has been computed (in practice, any time after the end of the relevant tax year).
The 바카라 사이트˜corresponding year바카라 사이트™ basis also applies to tax deducted at source - see LLM5290.
ATF income is not income from 바카라 사이트˜savings and distributions바카라 사이트™
Interest and dividends that are included in Lloyd바카라 사이트™s trade income are not regarded as income from savings and distributions for the purposes of ICTA88/S1A. The tax withheld from Lloyd바카라 사이트™s ATF income is therefore offset against total tax due rather than meeting tax on the specific income.
For example, a Name바카라 사이트™s 2003-04 Lloyd바카라 사이트™s Case I profits of £11,000 include £1000 interest (from which £200 tax has been deducted). The Name바카라 사이트™s other income for the year is farming profits of £8,000. The Name바카라 사이트™s self assessment for the year will be:
| - | £ | £ |
|---|---|---|
| Lloyd바카라 사이트™s profits | 11000 | - |
| Farming profits | 8000 | - |
| Total profits | 19000 | - |
| Less PA | 4615 | - |
| Net taxable income | 14385 | - |
| Tax due | 1960 @ 10% | 196.00 |
| - | 12425 @ 22% | 2733.50 |
| - | - | 2929.50 |
| Less tax at source | - | (200.00) |
| Net tax due 2003-04 | - | 2729.50 |
| Class 4 NIC | 14385 @ 8% | 1 150.80 |
The £200 tax at source is offset against the total income tax due rather than meeting the Name바카라 사이트™s liability to lower or basic rate tax on £1,000 income.