Trusts & Tax

Are Trusts Liable for Capital Gains Tax?

Trusts usually have to pay capital gains tax on their assets, though bare trusts pass the bill to beneficiaries instead.

Capital Gains Tax on Losses from Trusts

How capital losses from trusts can reduce your overall capital gains tax bill.

Capital Gains Tax Rates and Exemptions?

How capital gains tax works, who pays it, and which assets are exempt from charges.

Capital Gains Tax Taper Relief

How taper relief can reduce your capital gains tax bill when you've held investments for several years.

How Is a Bare Trust Taxed?

Bare trusts offer tax-efficient ways to gift money to children, but they're irrevocable and come with specific tax rules you should know.

How Is a Discretionary Trust Taxed?

Discretionary trusts are taxed at a flat 40% rate on income and capital gains, with no tax burden on the settlor who transfers assets into the trust.

How Is an Interest in Possession Trust Taxed?

Interest in possession trusts pass income to beneficiaries, but tax rules depend on who can benefit and the settlor's relationship to the trust.

Reducing Your Tax Bill with an Offshore Trust

Offshore trusts can reduce your capital gains and income tax without moving abroad, but watch out for tax charges when transferring assets.

Tax Avoidance Investigated by MPs?

MPs are investigating how UK companies and trusts use tax avoidance schemes to cut their tax bills.

What Happens When the Settlor Benefits?

When a settlor keeps a financial interest in a trust, it creates unexpected tax problems that need immediate attention.

What Is Absolute Entitlement?

Absolute entitlement in trust law means having sole and exclusive control to direct how trustees manage trust assets.

Will a Trust Affect My Self Assessment?

As a trustee, you'll need to file self-assessment tax returns even if you're not self-employed.