Commentary on Sections Structure of Chapters Overview Section 621: Income charged
2392.This section sets out the amount charged to tax. It is based on sections 69, 660C and 677 of ICTA.
2393.All the income and capital payments which are to be treated as the settlor’s income are chargeable to tax.
2394.The income to be treated as the settlor’s income under section 624 is the income arising under the settlement. The meaning of income arising under a settlement is given in section 648. Subsection (1) of that section provides that income arising under a settlement includes income chargeable to income tax by deduction or otherwise and, in the case of income from outside the United Kingdom, income which would be chargeable if received by a UK resident. In consequence the appropriate measure of income chargeable and the tax year of charge are provided by the charging sections of other Chapters of this Act (or the appropriate sections of the Income Tax Acts).
2395.Section 648(2) provides that where the settlor is non-domiciled etc and the settlement is entitled to income which would not be chargeable on the settlor if he or she made a claim for the remittance basis to apply, it is excluded from income arising under a settlement and is therefore not chargeable on the settlor.
2396.The amount of income arising under a settlement which is treated as the settlor’s income under section 629 and the year of charge are given in subsection (1) of that section.
2397.The amount to be treated as the settlor’s income under section 633 and the year of charge are given in subsection (1) of that section.