The Taxation of Trusts Can Be Tricky
Last updated on May 5th, 2020 at 10:06 am
Trusts are a valuable financial planning tool, yet the taxation of them can cause problems for students taking the CII exams. Here, we look at the income tax position of the three main types of trust that can be examined in AF1, J02, R03 and potentially in R06 and AF5 as well.
THIS ARTICLE IS RELEVANT TO EXAMINABLE TAX YEAR 2019/20.
In future articles, we will consider the capital gains tax and inheritance tax treatment.Trusts are a valuable financial planning tool, yet the taxation of them can cause problems for students taking the #CII exams Click To Tweet
Trustees act as nominees Beneficiary is absolutely entitled to the assets – or would be if they were aged 18
Interest in Possession
Where one or more beneficiaries has the right to the income arising in the trust
The trustees have discretion as to who gets income and capital
This is part 1 of a 2-part series. Here, we talk about the CGT and IHT treatment of trusts.
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