Bond in Vulnerable trust

smith

Hi all,
We are looking at a recommendation for the above. The vulnerable person election is yet to be made, but will be shortly.

Its a relatively large amount so looking at a bond.

Question - if the election allows the trustees to reclaim the difference in tax between trust rates and those that would have been paid in the hands of the beneficiary, I take it that top slicing can be used to calculate the amount of tax that can be reclaimed on segment surrenders?

Thanks

SA96

I might be missing something, but why wouldn't you just assign the segments to the beneficiary? or appoint into a bare trust if they are under 18?

That way, you avoid the trustee rate of tax completely, and it saves you having to file a trust tax return?

les_cameron

You basically tax the CE as if the underlying beneficiary is liable so TSR is available.