Autumn Budget 2024
This guidance note explains the different interests that a beneficiary can have in a trust and gives an overview of the inheritance tax, income tax and capital gains tax treatment of trusts. In each case it links out to more detailed guidance notes which cover the different tax treatments in detail.
Introduction
The taxation of trusts is based on the personal tax regime. Trusts are subject to the same taxes as individuals: income tax, capital gains tax and inheritance tax. However, the application of those taxes varies according to the status and terms of the trust. The determining factor is most commonly the entitlement of the beneficiaries. Other relevant factors are the date of commencement of the trust, the age of the beneficiaries and whether it was created during lifetime or on death. Therefore, the first step in working out how a trust is to be taxed is to examine the trust document to ascertain these details.
Beneficiaries鈥� entitlement
Trust property is legally held by trustees but for the benefit of
Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+鈩�Related documents:
Related documents:
Popular Articles
Transferable tax allowance (also known as the marriage allowance)
Transferable tax allowance (also known as the marriage allowance)What is the transferable tax allowance (marriage allowance)?From 6 April 2015, an individual can elect to transfer 10% of the personal allowance (拢1,260) to the spouse or civil partner where neither party is a higher rate or additional
Overseas property businesses for companies
Overseas property businesses for companiesOverviewReal estate income is generally taxed where the property is located; the UK tax treaties generally allow the jurisdiction where the land is located to tax income from the land.Therefore, a UK company with overseas property may be subject to tax in
Parking provision and expenses
Parking provision and expensesCar parking facilities at or near to the employee鈥檚 workplaceThere is an exemption from tax and NIC where an employer provides parking, or pays for or reimburses an employee for the costs associated with car parking at or near the place of work; there are no reporting
