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To be clear then at the moment if the trust disburses cash to beneficiaries there is some tax event. As you say the trust pays the tax and the beneficiaries tax allowance can be used to claim that back. If there is a zero percent "loan" either for a house or say a car then there is no tax event for either the trust or the beneficiary ?
If the loan is never paid back is there then a tax event as I'm not understanding why trustees don't always "loan" money to beneficiaries rather than give it to them as the tax difference would seem to be big.