The following Trusts and Inheritance Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note deals with the main principles of income tax that apply to the beneficiary of a discretionary trust.
An individual will be charged to income tax only where he is entitled to, or receives, income from a taxable source. As a beneficiary of a discretionary trust, the source of income is from the discretionary trust itself.
Where a beneficiary receives income from a discretionary trust, he receives it because he has become entitled to that income upon the exercise of the trustees’ discretion. Therefore, the source of the beneficiary’s income is the trust itself. This contrasts with the position of a beneficiary of an interest in possession trust who is treated as deriving his income from the trust property. See the Interest in possession beneficiaries (IT) guidance note.
The rule in Drummond applies to trusts where the beneficiary does not have title to the income as it arises, for example, where:
he is a beneficiary of a discretionary trust
the trustees have a power to acc
**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.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
The majority of state benefits (also called social security benefits) are managed by the Department of Work and Pensions (DWP) via the Jobcentre Plus.Some benefits are dependent on a national insurance contribution record (and different classes of national insurance provide different benefit
Summary of capital allowances on carsThe current capital allowance rates applicable to cars are as follows:Pool typeDescription of carRateLegislationMain rate poolNew and unused cars with CO2 emissions over 50g/km but not more than 110g/km (to be reduced to 50g/km and below from April 2021)18%CAA
The basic rule is that all benefits provided to an employee by reason of their employment are taxable unless there is a specific exemption or other rule that means they are not chargeable to tax.ExemptionsThe main exemptions for employee benefits are in ITEPA 2003, ss 227–326B (Pt 4).Below is an
Normal due dateSmall companies (including marginal relief companies) are required to pay all of their corporation tax ― nine months and one day ― after the end of the chargeable accounting period.For example, where a chargeable accounting period ends on 31 December 2018, the due and payable date for
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.