Avoiding the 50% tax rate for trustees

From 6 April 2010 the rate of income tax paid by trustees of discretionary and accumulation trusts increased to 50%.  For those trustees that have taken no action there is still time to avoid the impact of this higher rate in future tax years.  Changes in investment strategy may have to be implemented over an extended time frame but, in some cases, a change to the terms of the trust may be appropriate. 

To discuss how the tax rate increases will affect your trust, speak to your usual Littlejohn tax adviser or trust tax specialist Barry Luscombe on 020 7516 2204 or email bluscombe@littlejohnllp.com