TSEM3195 - Trust income: business profits
If trustees carry on a business, the profits are not 바카라 사이트˜earned income바카라 사이트™. This applies even where the trustees carry on the business through a beneficiary who is not a trustee.
If a beneficiary (or the beneficiary바카라 사이트™s spouse) receives profits, they are not necessarily earned income. It depends on the involvement with the business. The profits are only earned income if the beneficiary and/or spouse actively conducts the business. It is not enough just to take a limited interest. It would not be enough to receive reports of progress, or appoint a manager.
A beneficiary may be an employee of the business. Any pay is earned income. Profits are not.
Tax cases
Fry v Shiels Trustees 6 TC 583
McDougal v Smith 7 TC 134