Taxation of Trusts
This interpretation statement explains the taxation of trusts under the trust rules in the Income Tax Act 2007. It updates and replaces IS 18/01. The statement is a general guide as to how income derived by the trustees and beneficiaries of a trust is taxed. The statement also overviews the various compliance obligations imposed on settlors, trustees and beneficiaries under tax law. It does not deal with the proposed change to the trustee tax rate and related measures announced in May 2023.
Due to its length, it is accompanied by a reading guide summarising the main legislative changes since IS 18/01.