TSEM3017 | Trust income and gains: the charge on trustees - standard rate band - order of income

2005-2006 to 2023-2024

The standard rate band applied to the lowest slice of income and the order in which it was applied against income follows the normal income tax rules in ICTA88/S1A. This provides that dividend income is treated as the highest slice of income, followed by all other income such as income from a trade or from property. Therefore the standard rate band is set:

• firstly, against non-dividend income that is chargeable at the basic rate,

• then against dividend income chargeable at the dividend ordinary rate.

From 6 April 2024, the standard rate band provisions are withdrawn.