An elementary guide to the taxation of UK trusts

Tax Faculty responds to questions raised during the ICAEW webinar on 10 November 2016

Sarah Ghaffari and Sue Moore presented a practical webinar last week which considered the various tax implications of setting up, running and ending a trust. Although the webinar focussed on relevant property trusts (discretionary trusts and non-qualifying interest in possession trusts), various other trusts were described and the treatment of estates was considered.

We received a number of questions during the webinar which we did not have time to answer. These questions have now been answered and can be viewed by clicking on the file below.

There is no requirement to watch our webinars live, although doing so allows you to participate and ask questions to the presenter. Provided you have signed up and registered for the webinar event, you can watch it any time. After the end of the live webinar an email will be sent to you with the link to the recording.

 

Note added 16.11.16

We have replaced the original pdf having expanded the answer to question 8 (what records should be kept to show whether a distribution is capital or income from a discretionary trust?) to avoid confusion.

Our original answer included the sentence “A distribution made out of trust capital is normally regarded as capital of the beneficiary and so is not taxable”

This has now been expanded to make it clear that “A distribution made out of trust capital is normally regarded as capital of the beneficiary and so is not taxable on the beneficiary, although an exit charge may be payable by the trustees.”

Taxation of trusts - qa 2.pdf
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