How and why trust income and capital gains are taxed differently.
The law of trusts dates to the 12th century around the time of the crusaders, and although the accounting and taxation of trusts is often seen as the realm of specialists, a basic understanding is extremely valuable. This article sets out the taxing of UK non-settlor interested trusts. Trusts for disabled persons, protective trusts, trusts for vulnerable beneficiaries and bare trusts may have different tax treatment or additional elections that are not covered in this article.
The income tax regime depends on the type of trust.
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