Personal tax implications for beneficiary from discretionary trust

[spoodlepen]

Hi,
I am trying to find out what the personal tax implications are for a beneficiary who receives a lump sum payment from a discretionary trust.
I have an opportunity to apply for a lump sum but am worried about the personal tax implications for me.
If anybody can advise that would be very helpful.
Thanks

[AGoodman]

Depends on:

1. Who set up the trust (any relation?)
2. Do they have an interest
3. Is the lump sum capital, income or accumulated income
4. Is the trust UK resident

You haven't explained why the trust would require an application (is it a charity?) but ordinarily, there are only tax implications for distributions from a UK trust if part consists of income. There are so many factors that you are best off asking the trustees.

[spoodlepen]

Thanks for your reply.
In this case in answer to your questions:
1-Yes, they are a distant relation.
2-Not sure what you mean, however they have essentially handed the money over to the investment trust to be the sole trustee.
3-It would be a lump sum I believe.
4-The relative is a UK resident and the trust is with Zedra who are in the UK and also global.

So it sounds like there might not be tax implications, I've tried to read up about it but it's confused me more.
Thanks

[AGoodman]

I don't think we will reach any particular conclusions here.

If the trustee is Zedra's UK trust company then there probably won't be a tax liability. Particularly if the settlor is also a beneficiary (i.e. "has an interest").

You would be best placed asking Zedra as they will have all the facts and may be able to tell you the answer.

[NonDom41]

@AGoodman

Sorry for my interruption. I have sent you a Private Message; can you please check?

[spoodlepen]

Hi, sorry but I didn't receive a private message from you.
Thanks