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Where Taxpayers and Advisers Meet

Beneficiary's healthcare – distribution or expense?

Anicetry
Posts: 28
Joined: Wed Aug 06, 2008 4:00 pm

Beneficiary's healthcare – distribution or expense?

Postby Anicetry » Thu Jul 12, 2018 2:43 pm

Where a family discretionary trust is paying private healthcare fees for the beneficiary, are they regarded as trust expenses or a distribution to the beneficiary for tax and accounts purposes?

maths
Posts: 7426
Joined: Wed Aug 06, 2008 3:25 pm

Re: Beneficiary's healthcare – distribution or expense?

Postby maths » Thu Jul 12, 2018 6:15 pm

Not a trust expense.

The trustees appear to be making either an income or capital payment to the beneficiary (or to the health care outfit at the request of the beneficiary).


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