½Û×ÓÊÓƵ

Calculation of vulnerable beneficiary relief


Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
tag-icon Autumn Budget 2024

Calculation of vulnerable beneficiary relief


Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
tag-icon Autumn Budget 2024
imgtext

This guidance note explains how income tax and capital gains tax relief for vulnerable beneficiary trusts is calculated and explains the effects of a claim in different circumstances. The qualifying conditions for the relief and procedure for making a claim for special tax treatment is described in the Vulnerable beneficiary trusts guidance note. The ‘special tax treatment’ is one claim for income tax and capital gains tax. You cannot choose to claim one without the other. However, the reliefs are calculated and declared on the tax return separately.

Calculation of income tax relief

The income tax concession for vulnerable beneficiary trusts is a tax reduction in the trustees’ income tax liability applied at Step 6 of the calculation of liability under ITA 2007, s 23. It is applied after any other reduction to which the trustees are entitled.

The aim of the relief is to bring the trustees’ tax liability down to what the vulnerable beneficiary’s tax liability would be on the trust income if it had arisen to him directly.

Essentially,

Continue reading
To read the full Guidance note, register for a free trial of Tolley+â„¢
TAKE A FREE TRIAL
Powered by
  • 01 Nov 2024 07:11

Home/ ½Û×ÓÊÓƵ Guidance/ Trusts and Inheritance Tax / Advising on trusts — IHT

Popular Articles

Personal Tax

VAT on property disposals

VAT on property disposalsThis guidance note provides an overview of the VAT treatment of selling property that is located in the UK. The UK includes Great Britain, Northern Ireland and the territorial sea of the UK. The sale of any land or building located outside the UK is outside the scope of UK

14 Jul 2020 13:57 | Produced by Tolley Read more Read more
Corporation Tax

Temporary differences

Temporary differencesCalculation of temporary differencesThe temporary difference arising in respect of an asset or liability is calculated by comparing the carrying value of that asset or liability with its tax base.IAS 12 uses the concept of taxable or deductible temporary differences. Whether a

14 Jul 2020 13:49 | Produced by Tolley in association with Malcolm Greenbaum Read more Read more
Corporation Tax

Terminal trading loss relief

Terminal trading loss reliefTerminal loss relief for trade losses in the final 12 monthsTrading losses incurred by a company in the final 12 months leading up to the discontinuance of trade may be carried back for up to three years from the period beginning immediately before that 12-month period.

14 Jul 2020 13:49 | Produced by Tolley Read more Read more