23 January 2002
A discretionary trust receives a mix of income from rents, government stocks and ordinary shares. The trustees have been in the habit of making quarterly distributions of income.
In 2000-2001 the distributions were found, after 5 April 2001, to have given rise to a liability on the trust under section 687(2), Taxes Act 1988. In other words, the available tax pool to frank the distributions is insufficient to cover the full 34 per cent rate applicable to trusts which has to be certified to the beneficiaries in respect of each of their distributions.
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
