The Taxation of Trusts: A Review
The LITRG are aware that many ordinary people are the beneficiaries of trusts over their lifetime and recommend that the taxation of both trusts and estates in administration are simplified to help those on low incomes or who are otherwise vulnerable.
We also suggest the following in our submission:
- That where trust income is distributed it should be taxed on the beneficiary, not on the trustee.
- That consideration be given to changing the tax regime affecting personal injury trusts, as these are likely to be created at a time when an individual is vulnerable.
- That a root and branch review of the desired uses of trusts for the disabled be undertaken and that legislation is drafted to ensure the best outcome for the disabled beneficiary.
You can find our submission here: The Taxation of Trusts: A Review – LITRG response