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Home / Simons-Taxes /IHT, trusts and estates /Part I5 Settled property /Division I5.12 Income tax and CGT for non-resident settlements /Liability of beneficiaries—income tax / I5.1236 Benefits provided to a beneficiary
Commentary

I5.1236 Benefits provided to a beneficiary

IHT, trusts and estates

Charge on individuals receiving a benefit

Where a beneficiary receives a benefit out of trust assets (which includes any capital sum) available as a result of a transfer of assets abroad (see Division E1.11), he is chargeable to income tax1 on the income treated as arising2.

The benefits charge applies where the beneficiary is not otherwise liable to income tax on the amount or value of the benefit3.

The charge applies to both UK domiciled beneficiaries and also formerly domiciled resident beneficiaries (ie those who are deemed domiciled by virtue of being born in the UK, having a UK domicile of origin and being UK resident for the year).

Since 2017/18

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Web page updated on 17 Mar 2025 17:06