The taxation of trusts has been in the spotlight again, most recently following the proposed increase in the trustee tax rate from 33% to 39%. The proposed increase in the trustee tax rate is intended to limit opportunities to circumvent the 39% top personal tax rate.
The proposed change in the trustee tax rate, together with escalating compliance costs, has resulted in advisers reviewing their clients’ trust structures to ensure they are still “fit for purpose”. This review will often result in distributions being made, debts being forgiven, trust property being transferred to other structures, and trusts being varied, resettled or wound up.
These changes will often give rise to tax consequences. It is critical that advisers ensure that their clients are aware of these tax implications and take steps to mitigate them.
7 September 2023
Accountants of all levels, tax lawyers, trust lawyers and others who act as trustees of clients’ trusts.
Stephen Tomlinson, Principal, Tomlinson Law.
1.5 CPD Hours