Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Difficult distributions

26 August 2008
Issue: 4173 / Categories: Forum & Feedback
Declaring payments from a trust to a beneficiary

Payments are frequently made to trust beneficiaries with the tax consequences considered later. In a previous employment of mine if the payments made by a trust in a year exceeded the available tax pool (therefore giving rise to a charge) the instruction was simply to only include as revenue as much as could be covered by the tax pool and to treat the remainder as capital.

With more experience I now think that there should also have been some sort of 'return' as far as the capital side of things is concerned by way of an IHT100/100c. Certainly I was never instructed to do that being way too low on the pecking order to be trusted with such a complicated task; but nor to my knowledge did any of my colleagues. Am I worrying unnecessarily?

In my current firm we have a...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

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 '' for further assistance.

back to top icon