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TRUSTS, SETTLEMENTS AND ESTATES |
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Repayment of tax to settlor See TM ¶7348 A settlor who is taxable on the trust’s income may receive a repayment of tax if he is taxable at a lower rate than the trustees. If this situation arises because of an allowance or relief available to him, he must pass the tax repayment on to the trustees. From 6 April 2010 this requirement is extended, such that any repayment received by the settlor in relation to trust income must be paid over to the trustees, irrespective of how it arose. This measure was previously announced in the March 2010 Budget. Further details will be in the Finance Bill to be introduced after the Parliamentary summer recess. Charitable trusts for asbestos victims See TM ¶7510+, ¶7395, ¶7326 Certain trusts for asbestos victims will be exempt from taxation with effect from 6 April 2006. Such a trust will be exempt from: » the 10-year inheritance tax (IHT) charge on assets, and from IHT on certain payments out of the trust; » capital gains tax on disposals of trust assets; and » income tax on trust income. To qualify, a trust must have been set up: » on or before 23 March 2010; » as part of an arrangement between a company and its creditors; and » specifically for the purpose of paying compensation to (or in respect of) victims of asbestos-related conditions. This measure was previously announced in the March 2010 Budget. Further details will be in the Finance Bill to be introduced after the Parliamentary summer recess. |
