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Home / Simons-Taxes /Corporate tax /Part D8 Investment schemes /Division D8.1 Collective investment schemes /Unauthorised unit trusts—pre 6 April 2014 / D8.177 Distributions
Commentary

D8.177 Distributions

Corporate tax

The provisions in this article apply until 5 April 2014, unless the UUT is a mixed trust (D8.186). Otherwise, from 6 April 2014 (subject to transitional arrangements (D8.186)) the provisions at D8.180 apply.

A 'distribution period' is a period for which income from investments is aggregated to determine the amounts available for distribution to unit holders1. If the scheme does not provide for distribution periods, successive periods of 12 months from the commencement of the scheme are taken2; if the scheme provides for distribution periods exceeding 12 months, the period is divided into two, starting with the first 12 months3.

Unit-holders

The proportion of the aggregate amount available for distribution to each unit holder is referred to as a 'deemed payment'4. Where the unit holder is subject to income tax, the trustees are treated as making a payment equal to5 the unit holder's proportionate share of the trust income available for payment, grossed up at the basic rate of tax for the tax year

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