Commentary

I5.1308 Deductions from beneficiary's total income

IHT, trusts and estates

I5.1308 Deductions from beneficiary's total income

I5.1308 Deductions from beneficiary's total income

Annual payments etc

For the extent to which relief is available for annual payments etc, see E1.801.

Trust management expenses (TMEs)

The income of a beneficiary of an interest in possession settlement is restricted to the amount of settlement income to which he is entitled. This means that his income does not include settlement income which has been used to incur allowable trustee management expenses (TMEs) as he is never entitled to that income1 — see D1.103 and TSEM8325.

For the meaning of allowable TMEs, see I5.1005 and I5.1010.

The various types of the beneficiary's income are reduced in the following order2:

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