This module discusses trusts and income tax. It starts by explaining what trusts are and shows how to deal with income tax on trusts in straightforward cases. It starts by pointing out the difference between the two types of trusts: income in possesion and discretionary.
Trusts and Income Tax shows how the liabilities of both the trustees and the beneficiaries of income in possesion trusts are calculated and then contrasts this with the income tax position of discretionary trusts.
The course doesn't cover the capital gains tax which may apply to trusts.
On completion of this online course, you will gain an understanding of:
- the difference between the two types of trust
- the effect of this difference on their income tax affairs
- how trustees and beneficiaries of interest in possession trusts are taxed
- how trustees and beneficiaries of discretionary trusts are taxed
- income tax issues arising in discretionary trusts.