.png)
.png)
It is commonplace that the tax measure of income can be different from the commercial amount in particular for trading and rental income.
How is this mismatch dealt with if the income is first that of trustees and later that of a trust beneficiary?
The particular situation I have is an interest in possession trust which is becoming a partner in a trading limited liability partnership (LLP).
The LLP is expected to be immediately profitable but will have extensive capital allowances available to it. The trust share of profit might be say £50 000 but the tax adjusted measure of the trust’s profit is likely to be nil for the initial years.
The trustees will therefore not have any tax liability for these initial years. However is the interest in possession beneficiary liable to...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
