UUÂãÁÄÖ±²¥

Trading income


Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance

Trading income


Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
imgtext

Trading income for trusts

Trustees may be required to run a family business for the benefit of others, or they may decide to invest the trust fund in a business activity. In most cases, such a business will be in the form of a company in which the trustees hold shares so that the trust income arising from it will be in the form of dividends or interest. However, it is possible for trustees to be in receipt of income from an unincorporated business which they own. Some of the situations which might arise are:

  1. •

    a deceased testator leaves his professional practice on trust to provide an income for his spouse. See Example 1

  2. •

    a trust is created for the farming activities and other commercial interests of a complex landed estate. See Example 2

  3. •

    trustees with residential property holdings may decide that

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

TAKE A FREE TRIAL
Powered by
  • 29 Apr 2024 07:13

Home/ Tolley Tax Guidance/ Trusts and Inheritance Tax / Advising on trusts — income tax and CGT

Popular Articles

Owner-Managed Businesses

Residential property and capital allowances

Residential property and capital allowancesResidential property ― plant and machinery allowancesOrdinary residential property does not, and never has, qualified for capital allowances. as CAA 2001, s 35 denies plant allowances for expenditure incurred in providing plant or machinery for use in a

14 Jul 2020 17:14 | Produced by Tolley in association with Martin Wilson and Steven Bone Read more Read more
Personal Tax

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 (£1,260) to the spouse or civil partner where neither party is a higher rate or additional

14 Jul 2020 13:52 | Produced by Tolley Read more Read more
Corporation Tax

Withholding tax

Withholding taxIntroductionUK tax must be withheld on UK payments including:•interest•royalties•rental incomeUK withholding tax may be reduced under the provisions of a double tax treaty (DTT). Prior to 1 June 2021, payments of interest and royalties made to EU resident associated companies were

14 Jul 2020 14:01 | Produced by Tolley Read more Read more