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Where Taxpayers and Advisers Meet

beneficiary abroad

strawn
Posts:96
Joined:Fri Jun 01, 2012 10:11 am
beneficiary abroad

Postby strawn » Wed Mar 23, 2022 3:42 pm

A minor is a UK citizen and a beneficiary of an English discretionary trust. He was born abroad, in the country where he has since lived all his life.

If income from the trust is distributed to him, is he liable to UK income tax on it?

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: beneficiary abroad

Postby maths » Thu Mar 24, 2022 1:26 am

Strictly speaking, in the absence of a Double Tax Agreement (if any) the income is taxable in the UK. However, income payments from a discretionary trust carry a 45% tax credit which would offset completely any tax charge.

In short and in practice no charge arises.


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