Commentary

I5.1236 Benefits provided to a beneficiary

IHT, trusts and estates

I5.1236 Benefits provided to a beneficiary

I5.1236 Benefits provided to a beneficiary

Charge on individuals receiving a benefit

Where a beneficiary receives a benefit out of trust assets (which includes any capital sum) available as a result of a transfer of assets abroad (see Division E1.11), he is chargeable to income tax1 on the income treated as arising2.

The benefits charge applies where the beneficiary is not otherwise liable to income tax on the amount or value of the benefit3.

The charge applies to both UK domiciled beneficiaries and also formerly domiciled resident beneficiaries (ie those who are deemed domiciled by virtue of being born in the UK,

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