Trust & Income Tax

Question 1

Bare

Answer 1

• liability on beneficiary

* BENEFICIARY has CGT, PA, SRB & PSA available

Question 2

IPDI / IIP

Answer 2

• liability on trustees for BRT only
• Beneficiary may have more to pay
• BR IT paid by trustees
• Non tax payer can reclaim tax paid. HRT and ART must pay the difference

Question 3

Discretionary

Answer 3

• liability on Trustees
• SRB £1000 (20%/7.5%) - divided by number of trusts set up
• Income paid with 45% tax credit / 38.1%
• Expenses tax deductible
• Beneficiary receives income net of 45%
• May be able to reclaim some
• No PSA or DA available