The following Trusts and Inheritance Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
The tax liabilities of UK resident beneficiaries of non-resident trusts are governed by a series of ‘tax hierarchy’ rules. See the Tax on UK resident beneficiaries of non-resident trusts (overview) guidance note.
The first step is to establish whether:
The nature of the beneficiaries’ interest will help to determine what type of payment it is. This is discussed further in the Tax on UK resident beneficiaries of non-resident trusts (overview) guidance note.
Payments of and entitlement to income are subject to income tax according to the principles set out in this guidance note.
There are special rules where income is distributed from a settlor-interested trust. These are described in the following guidance notes:
**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
To view our latest tax guidance content, sign in to Tolley® Guidance or register for a free trial.