An essential guide for any trust practitioner or trustee, this book provides a comprehensive overview of how tax law applies to settlors, trustees and beneficiaries.

The fourth edition of Taxation of Trusts has been updated to incorporate the Trusts Act 2019, recent developments in charity and trust case law, new disclosure obligations for complying trusts, the application of the bright-line test to trusts, and other legislative reforms that are relevant to settlors, trustees and beneficiaries of trusts. The text also includes practical examples and summaries of recent trust, tax and charity cases.

Presented in a user-friendly format, the book seeks to answer questions that arise in practice. Each chapter includes relevant legislation for the subject matter covered.

Topics covered include:

  • settlors for income tax purposes
  • trustee income
  • trustees’ liability for tax
  • beneficiary income and distributions
  • tax consequences that can flow from certain inheritances
  • tax avoidance
  • classification of trusts for tax purposes
  • trust migration
  • trading trusts
  • dividend stripping
  • qualifying and look-through companies
  • imputation and RWT credits
  • associated persons
  • attribution rules
  • variation and resettlement
  • unit trusts
  • charitable trusts