½Û×ÓÊÓƵ

Trading income


Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance

Trading income


Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
imgtext

Trading income for trusts

Trustees may be required to run a family business for the benefit of others, or they may decide to invest the trust fund in a business activity. In most cases, such a business will be in the form of a company in which the trustees hold shares so that the trust income arising from it will be in the form of dividends or interest. However, it is possible for trustees to be in receipt of income from an unincorporated business which they own. Some of the situations which might arise are:

  1. •

    a deceased testator leaves his professional practice on trust to provide an income for his spouse. See Example 1

  2. •

    a trust is created for the farming activities and other commercial interests of a complex landed estate. See Example 2

  3. •

    trustees with residential property holdings may decide that the best way of maximising the fund for beneficiaries is to engage in property development. See Example 3

The trading activity need not be long term or substantial. It

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+â„¢
TAKE A FREE TRIAL NOW
Powered by
  • 14 Feb 2025 08:54

Home/ ½Û×ÓÊÓƵ Guidance/ Trusts and Inheritance Tax / Advising on trusts — income tax and CGT

Popular Articles

Trusts and Inheritance Tax

Settlor-interested trusts

Settlor-interested trustsWhat is a settlor-interested trust?A settlor-interested trust is one where the person who created the trust, the settlor, has kept for himself some or all of the benefits attaching to the property which he has given away. A straightforward example is where a settlor

14 Jul 2020 13:38 | Produced by Tolley Read more Read more
Owner-Managed Businesses

Bad debts

Bad debtsBad debts usually arise where goods or services have been provided to a customer, for which payment has not been received within a reasonable or specified time period, or for which the customer is unable to pay. It is necessary to determine the quantum of relief that can be claimed for bad

14 Jul 2020 15:34 | Produced by Tolley Read more Read more
Employment Tax

Income tax paid on behalf of employee

Income tax paid on behalf of employeeIntroductionEmployers may wish to make payments of employment income to an employee / director without the employee suffering a tax or NIC cost on that pay. In other words, the employer wants to pay an amount net of tax and NIC. In some instances, often with

14 Jul 2020 11:58 | Produced by Tolley in association with Paul Tew Read more Read more