Discretionary Trust Tax Pool anomoly

[Carlo234]

Hi All. As a Trustee of my father's Discretionary Will Trust, I'm ok with the basic concept of the Tax Pool, but don't understand one particular aspect.   Using HMRC's Discretionary Trust Tax Pool Calculator, I entered the following:Tax Year 17-18, No of Trusts = 1, Other Trust Income (available for discretionary distribution): £100, Net Payments made to Beneficiaries : £24.45.   The response from the calculator is: “Tax Pool available before Payments to beneficiaries : £20,   Tax Pool surplus/shortfall (after making the distribution of £24.45) = £0"
As trustee, from this I understand that I may only distribute £24.45 of the income to the beneficiaries,  and the amount of tax that I as trustee will pay on the £100 is theoretically at most £45.
So from the £100 of income if we subtract the distribution of £24.45, and the maximum (albeit unlikely) tax paid of £45, it leaves £30.55.
What do I do with this remaining £30.55 of income?     Can I distribute it without an accompanying tax credit?
And what's HMRC's reasoning in allowing only £24.45 to be made available for distribution from £100 of income?

[Lee Young]

It migt help you to now that the first £1,000 of income in a discretionary trust is taxed at the basic rate, so 20% for bank interest, or 7.5% for dividends. All distributions out to beneficiaries are deemed to be net of the 45% tax credit, irrespective of how much tax has been put in the pool.