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Where Taxpayers and Advisers Meet

Will Trust - Donations

Jholm
Posts:222
Joined:Mon Mar 11, 2019 4:22 pm
Will Trust - Donations

Postby Jholm » Tue Oct 05, 2021 1:27 pm

Hi all,

As far as I can see there is no provision with which this is possible but ask the experts and all...

Facts:

Will trust set up with one 'beneficiary' but the funds are used to pay school fees. The trust made a donation of several thousand to the school, to help some parents who were struggling during the pandemic. The school has asked if they can reclaim gift aid, which on the face of it would be a no since the donation was not made by an individual.

However, can anyone think of any kind of structure where this might be possible for the future? Is there any argument under which you could claim the donation to be a deductible expense (thinking not myself)?

The trust pays income tax on mostly dividends.

Thanks,

Jholm
Posts:222
Joined:Mon Mar 11, 2019 4:22 pm

Re: Will Trust - Donations

Postby Jholm » Tue Oct 05, 2021 2:05 pm

Just to add... a distribution to the beneficiary and then a subsequent donation from them as an individual would give rise to tax being due since their total income would be below PA.

maths
Posts:8333
Joined:Wed Aug 06, 2008 3:25 pm

Re: Will Trust - Donations

Postby maths » Tue Oct 05, 2021 10:29 pm

Seems trust used trust monies but not for the purpose of trust beneficiaries?

Jholm
Posts:222
Joined:Mon Mar 11, 2019 4:22 pm

Re: Will Trust - Donations

Postby Jholm » Wed Oct 06, 2021 1:40 pm

Good point, overlooked on my part. Could there be a clause in the trust deed that would allow this?

We don't deal with the trust, just the school so cannot comment in much details about the trust itself.


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