Trust tax rates 2024/25
benjaminfabi
Moderator
Hi,
I noticed in next year's tax rates that the £1,000 starting rate for trusts is being abolished in favour of a £500 de minimis level. When income is less than £500 no tax is due, then everything over will be trust rates on everything.
Does anyone have a link of a more detailed statement about this, as I only saw it in the updated HMRC rates and allowances tables following the budget. I'm left wondering if I missed a wider raft of changes to trust taxation or if this was a simple one-off.
Benjamin Fabi
Comments
Do you mean the changes they announced in the 2023 Spring Budget? - https://www.gov.uk/government/publications/simplifications-for-trusts-and-estates
Yes, perfect!
There was too much other stuff going on in that budget at the time! I knew I must have missed something!
Estates impact too
https://www.mandg.com/wealth/adviser-services/tech-matters/government/spring-budget-2023#trusts-and-estates
Note we believe the tax on the £500 eventually catches up when income is paid out.