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TSEM3019 | Trust income and gains: the charge on trustees - charge on accumulation or discretionary trusts

From HM Revenue & Customs · Trusts, Settlements and Estates Manual

A trust is within ITA/S479 if:

  • the trustees have the power to accumulate income or make discretionary payments, and the exemption for settlor -interested settlements to the special trust rates no longer applies.

Tax paid at the special trust rates is taken into account in the trustees’ tax pool -TSEM3021 explains how.

Certain discretionary trusts are exempt from the charge at the special trust rates (TSEM3011). TSEM3025 has details.