Paul Bramall and Priya Dutta provide your refresher guide
Many tax practitioners are unduly apprehensive of the tax treatment from trusts. The purpose of this article is to explain how distributions from trusts are charged to income tax and capital gains tax in a simple and digestible so that practitioners can feel at ease when dealing with trust distributions.
The way in which a trust distribution is taxed will depend on where the trust is resident. A trust will not be resident in the UK if:
all the trustees are non-UK resident; or
some of the trustees are resident outside the UK and the settlor of the trust was not resident ordinarily resident or domiciled in the UK when the trust was set up or funds were added.
All other trusts are UK tax resident.
Tax on UK resident trusts
A trust may distribute its income or capital to its beneficiaries. A trust...
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Paul Bramall and Priya Dutta provide your refresher guide
Many tax practitioners are unduly apprehensive of the tax treatment from trusts. The purpose of this article is to explain how distributions from trusts are charged to income tax and capital gains tax in a simple and digestible so that practitioners can feel at ease when dealing with trust distributions.
The way in which a trust distribution is taxed will depend on where the trust is resident. A trust will not be resident in the UK if:
all the trustees are non-UK resident; or
some of the trustees are resident outside the UK and the settlor of the trust was not resident ordinarily resident or domiciled in the UK when the trust was set up or funds were added.
All other trusts are UK tax resident.
Tax on UK resident trusts
A trust may distribute its income or capital to its beneficiaries. A trust...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
