Income Tax

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 2005 Act. 

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

The following notes are 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. 

Some Useful Definitions 

  1. The 2005 Act – The Income Tax (Trading and Other Income) Act 2005
  2. The 2007 Act – The Income Tax Act 2007
  3. TMA – The Taxes Management Act 1970
  4. HMRC – Her Majesty’s Revenue and Customs