Trustees of a discretionary trust have the power to decide how
to apply the trust funds. They may pay from trust income or
capital.
Where the trustees make a discretionary payment from income,
they usually give the beneficiary a form R185 (Trust Income). They
have to do so if the beneficiary requests it.
TSEM3755B explains the position for
discretionary payments to company beneficiaries.
Section
TSEM3756-3759 explain the position for
discretionary payments to individual beneficiaries.
TSEM3756 explains the position for
discretionary income payments from trusts that are not
settlor-interested.
TSEM3757 explains the position for
discretionary income payments from settlor-interested trusts.
TSEM3758 explains the position for
discretionary capital payments from trusts.
TSEM3759 explains when a discretionary
payment is considered to be made.
