Commentary on Sections Overview Overview Section 484: Trustees’ expenses to be set against trustees’ trust rate income
1414.This section concerns the trustees’ expenses which are to be taken into account in calculating the extent of the income chargeable at the special trust rates. It is based on sections 686(2AA) and 689B(1) of ICTA.
1415.Subsection (1) provides that the section applies where the trustees incur allowable expenses. This is in contrast to the source legislation which requires the expenses to have been defrayed. See Change 87 in Annex 1.
1416.Subsection (4) provides that where allowable expenses are set against income chargeable at the special rates, the income is instead charged at the rate that would normally apply to that type of income.
1417.Subsection (5) provides basic rules regarding what constitute allowable expenses.
1418.Subsection (6) makes it explicit that expenses are not allowable if they are taken into account (otherwise than under this section) in calculating the trustees’ liability for any tax year.