Reporting Trust Income on Self Assessment
Income from a trust — whether dividends, interest, rental income, or distributions — is taxable and must be reported on your Self Assessment return if it exceeds your allowances.
Types of Trust Income
- Interest distributions: Taxed as savings income
- Dividend distributions: Taxed as dividend income
- Rental income distributions: Taxed as property income
- Discretionary trust distributions: Come with a 45% tax credit
The R185 Form
The trust should provide you with an R185 form showing the income you received and any tax already deducted. You use this information to complete the trust income section of your Self Assessment return.
Tax Already Paid
Trustees pay tax on trust income before distributing it. The tax already paid is credited against your personal tax liability. If you pay tax at a lower rate than the trust, you may be due a refund.
Reporting
Include trust income on the relevant supplementary pages of your return. If you receive distributions from a discretionary trust, these go on the additional information pages.
For complex trust arrangements, professional advice from your accountant is recommended.
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