Tax on loans to beneficiaries of Discretionary Trust

Tax on loans to beneficiaries of Discretionary Trust

Postby worden on Sun Jan 08, 2012 4:38 pm

Hello there

wonder if someone can advise

1: If 1/2 house is put into a Discretionary Trust by Deed of Variation and that person is A Trustee and a beneficiary. If later that 1/2 house is let out, i believe the income derived will be taxed at 50%. If this income is then given to the person who has executed the DOV to help with care home fees can the tax be claimed back? Who is the settlor of the Trust, the person who died or the person who made the DOV ?
Secondly if the money is given to any other of the beneficiaries what are the tax implications--- can some of the tax be laimed backif they are a 20% tax payer?

Thank you for your time
worden
 
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Joined: Fri Sep 03, 2010 2:03 pm

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