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Readers’ forum: Taxation of a beneficiary of a will trust.

11 January 2022
Issue: 4823 / Categories: Forum & Feedback
Will trust

Our client Mr X died many years ago. His wife Mrs X and a local solicitor were trustees and executors of the will. The will left his limited company shares which were wholly owned by him to a will trust which is discretionary in nature.

His daughter who works for the company is going to be lent a large sum of money from the company. Accordingly a form P11D will be prepared.

The daughter is named as a potential beneficiary of the will trust.

I have two questions:

  • Will tax under CTA 2010 s 455 be payable as a result?
  • Would it be possible to exclude her as a beneficiary to avoid the s 455 tax?

I look forward to receiving replies from readers.

Query 19 869 – Uncertain.


Excluding a beneficiary might infringe the general anti-abuse rule....

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