I’ve been asked to create a Disabled Persons Trust using a deed of variation which means that the trust is settlor interested for income tax purposes. How does that affect any subsequent vulnerable person election by the trustees? As far as I can see it shouldn’t be an issue providing the trust qualifies but I wonder if anyone has any observations
Does FA 2005 s25(3) not preclude special income tax treatment where the disabled trust is settlor" interested"?
The settlor will be taxed on the trust’s income.
Malcolm Finney