Discretionary Trustees Take your Duties Seriously
Published / Last Updated on 01/02/2010
Discretionary Trustees – Take your Duties Seriously
by Ashley Clark, Director
As the taxation for Discretionary Trusts changes on 6 April 2010, Trustees could find themselves paying more than 60% on dividends.
With effect 6 April 2010 Discretionary Trusts will be subject to tax at the following rates:
Basic rate band: £1,000
then
Income tax: 50%
Income tax (for income from dividends): 42.5%
Capital gains tax (CGT): 18%
Trustees have a duty to treat the Trust investments as if they were their own, in order to do the best for their beneficiaries. Having to reclaim tax and make annual self-assessment returns causes added expense and time spent for all.
There are other investment solutions available that negate the need for income tax payments, which should be considered by all Trustees.
Useful links:
Contact us - Book Callback - Free Consultation - Newsletter - Money MOT - Discounts
