If the trustees of a settlement1 incur allowable expenses in a tax year2, those expenses are to be set against the trustees' trust rate income3 for the current tax year, before applying the provisions4 as to the trustees' first slice of trust income5. Expenses are allowable for this purpose only so far as: (1) they are expenses of the trustees; and (2) they are properly chargeable to income, ignoring the express terms of the settlement6. Only expenses incurred exclusively for the benefit of the income beneficiaries may be charged against income7.
Trustees who incurred an allowable expense in a tax
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and millions of others like it, sign-in to LexisLibrary or register for a free trial.
EXISTING USER? SIGN IN
TAKE A FREE TRIAL
0330 161 1234