Income Tax in Charitable Estates

This section of the course will give an overview of the main issues regarding income tax for trusts and estates. However, they do not cover less common issues for charities such as the specific rules relating to trusts for vulnerable adults, settlor interested trusts and the like.

The correct treatment of tax is the responsibility of the Personal Representatives, but it is important for a legacy officer to understand the tax regime so that they can, if necessary, bring it to the attention of the personal representative to ensure that all available tax reliefs are received.

The law regarding the taxation of estates in administration for both personal representatives and beneficiaries can largely be found in Part 5, Chapter 6 of the Income Tax (Trading and Other Income) Act 2005.

The main provisions for the taxation of trusts can be found in Part 9 of the Income Tax Act 2007.