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 benef
**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
Normal due dateIndividuals are required to pay any outstanding income tax and Class 4 National Insurance, Class 2 National Insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2021 for the 2019/20 tax year). From 6 April 2020, UK
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
Many people work from home either on an informal or a full-time basis. These people can be employed or self-employed, and their employment status affects the expenses they can claim as a deduction from their earnings.When dealing with someone working from home, it is important to remind him that
This guidance note provides an overview of the steps businesses need to take if aspects of their business change, and as a result, they need to notify HMRC about the change.Changes to name and / or addressIf a business changes its name and / or its address then it is required to notify HMRC of the
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.