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This guidance note describes how the income of a settlor-interested trust is charged on the settlor in accordance with the provisions of the Settlements Code set out in ITTOIA 2005, Part 5, Chapter 5. See the Settlor interested trusts guidance note. The three categories of charge are:

1. •

   on income arising under a settlement during the life of the settlor, from property in which the settlor has retained an interest

2. •

   on settlement income paid to relevant (ie unmarried minor) children of the settlor, during the life of the settlor

3. •

   on capital paid to the settlor by the trustees of a settlement (to the extent that it can be matched with undistributed income)