As announced in the April Budget, trustees of a discretionary trust will now be paying tax at the increased rate of 50% on savings/other income and 42.5% on dividend income, which exceeds the trustees’ standard tax rate band, currently £1,000.
This represents a 25% increase (33% for dividends) in the rate of tax for these trusts, so there’s no time to lose to limit the impact of this change for your clients.
To support you with this, we’ve created a range of material that will help you explain both the tax changes for your clients and show them how they can limit the impact.
Supporting material:
» A guide to the Trustee Act 2000
» Opportunities for limiting the impact
» Trust review checklist
» Trustee compliance flowchart
» Approach letter
If you require any further support, please contact your dedicated Regional Account Manager.
