13 Taxation of Trusts

Question 1

Types of Trust

Answer 1

1 Absolute
2 Discretionary
3 Bare Trust 
4 Interest In Possession Pre 22/3/2006
5 Interest In Possession Post 22/3/2006 - disc
6 Post death I in P
7 18 to 25 Trust for Minors
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Question 2

CGT on Trusts

Answer 2

CGT allowance £5,550
Tax rate either 20% or 28%
If more than 1 trust CGT allow spilt upto 5 trusts

Question 3

Bare Trust

Answer 3

Where settled grandparents no over £100

If settled parent over £100 rule

Question 4

Income Tax of Discretionary Trust

Answer 4

Trustees have standard rate band £1000 liable to 7.5%/20% and any excess at 38.1%/45%