Types of Trust and Tax Implications
Bare Trusts
With a Bare Trust each beneficiary has an immediate right to both capital and income.
Interest in Possession Trusts
With Interest in Possession Trust, beneficiaries have a right to all trust income.
Discretionary or Accumulation Trusts
Discretionary Trust Trustees choose whether to pay out trust income, Accumulation Trust Trustees re-invest income.
Mixed Trusts
Mixed Trusts combine different types of trusts.
Settlor-Interested Trusts
The 'Settlor', of a Settlor-Interested Trust, who puts assets into a trust, can continue to benefit from those assets.
Parent Trusts for Children
Special tax rules for Children's Trusts set up by parents for unmarried children below the age of 18.
Non-Resident Trusts
UK Trusts may be set up or managed by people living abroad.
Trusts for Vulnerable People
Special tax rules for Vulnerable People Trusts set up for disabled people or children who have lost a parent - calculating and claiming tax relief.
Heritage, Charitable or Business-related Trusts
Tax guidance on sinking funds, employee share schemes, heritage and maintenance trusts and others.