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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4075
Experience:  FCCA FCMA CGMA ACIS
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. I'm Karen from Devon. My father died over 2 years ago

Customer Question

Hello. I'm Karen from Devon. My father died over 2 years ago and his money went into a Trust fund. We have now decided to split equally between the three offspring, me and my brother and sister, and we would get about £15,000 each. Do you know if we would have to pay income tax on it. Would it be taxed after the tax allowance, and what rate of tax would apply? I've tried looking this up on HMRC website but can't find the answers! Thank you
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello Karen, I'm Keith and happy to help you with your question.
You will find your answer here:
https://www.gov.uk/personal-tax/trusts
How's that for a glib response which, I suspect will get you nowhere!
Assuming that this is a bare or a distribution trust, which seems likely, then the only exposure to tax would be on any income or gain made by the trust during its existence under the Income Tax and Capital Gains Tax regimes. In any event settlement of such taxes is the responsibility of the Trustees and this should be undertaken and any tax due paid just prior to distribution on dissolution and will not be your responsibility.
That settled then the 15K will pass to each of you free of tax. The receipt of these moneys in the hands of beneficiaries is outside the scope of UK taxation.
I do hope I have helped you with my answer.
bigduckontax and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

Thank you, ***** ***** huge relief!

Expert:  bigduckontax replied 2 years ago.
Delighted to have been of assistance.
Thank you for your support.