TSEM5615 - Trusts for particular purposes: compensation under ESC A68 -example using savings income - years to 2009-2010
The trustees must meet the conditions of the concession (TSEM5610).
This is how to calculate relief on savings income.
|
|
|
Tax Pool |
|
Tax pool brought forward |
|
Nil |
|
Interest received |
£100,000 |
|
|
Tax due at trust rate (40%) |
£40,000 |
£40,000 |
|
Income available for distribution |
£60,000 |
|
|
Total Tax pool |
|
£40,000 |
|
Amount distributed subject to PAYE |
£60,000 |
|
The compensation payable to trustees is the lesser of
|
£60,000 40% = |
£24,000 |
|
|
£40,000 |
|
The compensation payable is therefore |
|
£24,000. |
