SolvedTSEM5615 | Trusts for particular purposes: compensation under ESC A68 - example using savings income - years to 2009-2010
From HM Revenue & Customs · Trusts, Settlements and Estates Manual
The trustees must meet the conditions of the concession (TSEM5610).
This is how to calculate relief on savings income.
| Income and tax rates | Amount | Total |
|---|---|---|
| Tax pool brought forward | - | Nil |
| Interest received | £100,000 | - |
| Tax on standard rate band (20%) | £1,000 | £200 |
| Tax due at trust rate (40%) | £99,000 | £39,600 |
| Income available for distribution | £60,200 | - |
| Total Tax pool | - | £39,800 |
| Amount distributed subject to PAYE | £60,200 | - |
The compensation payable to trustees is the lesser of