TSEM8510 - Trust management expenses: settlor-interested trusts: accumulation/discretionary trust
The settlor of a 바카라 사이트˜settlor-interested바카라 사이트™ accumulation/discretionary trust gets no relief for TMEs. 바카라 사이트˜Income arising under a settlement바카라 사이트™ in a settlor-interested trust is the gross income without the deduction for trust management expenses.
In computing the settlor바카라 사이트™s liability the same deductions and reliefs are allowed as would be if the deemed income had actually been the settlor바카라 사이트™s. But no trust management expenses are allowed over and above the normal deductions for each source of income.
For example, a settlor-interested accumulation/discretionary trust has income of £10,000 out of which TMEs of £800 are incurred. Including the standard rate band, the trustees will pay at 20% on £2,000 (SRB + grossed up TMEs) and 50% on the balance £8,000, a total of £4,400. A settlor chargeable at 40% on the gross £10,000 is liable for £4,000 with credit for the trustees바카라 사이트™ tax, so is due repayment of £400. A settlor chargeable at 50% on the gross £10,000 is liable for £5,000 with credit for the trustees바카라 사이트™ tax, so is due to pay an additional £600.