Taxation logo taxation mission text

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

Trustee tax changes – time for trustees to review their investments?

04 March 2024 / John Woolley
Issue: 4927 / Categories: Comment & Analysis , 20% , Capital gains tax , income , Trusts
Is it time?

Key points

  • Trustees of discretionary trusts are being squeezed on taxation as impending changes increase the tax liabilities of trusts.
  • The income tax on such non-savings and savings income increases from 20% to 45% from 6 April 2024.
  • Special anti-fragmentation rules apply to prevent an individual creating several trusts with the intention of keeping the trust income of each of those trusts under £500 a year to avoid income tax.
  • With regard to CGT the AEA is set to fall to £1 500 (with a minimum of £300 for multiple trusts) from 6 April 2024.
  • It makes sense for trustees to review their investment strategies to enhance tax efficiency and improve investment returns for beneficiaries.
  • Investment bonds could be an attractive option from a taxation standpoint for trustees seeking capital growth.

As we move towards the new 2024-25 tax year it is important for trustees of discretionary trusts...

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