Tax reclaim relating to income from discretionary trust

I have read the https://www.gov.uk/trusts-taxes/beneficiaries-paying-and-reclaiming-tax-on-trusts, which says: Accumulation or discretionary trusts With these trusts all income received by beneficiaries is treated as though it has already been taxed at 45%. If you’re an additional rate taxpayer there will be no more tax to pay. You may be able to claim tax back on trust income you’ve received if any of the following apply: you’re a non-taxpayer you pay tax at the basic rate of 20% you pay tax at the higher rate of 40% If a beneficiary normally files a Self Assessment return, and they report the income received, will that process be sufficient for them to claim any tax back? Thanks

Hi,

Trust income is criteria for completing a self assessment tax return (SA100).  
The trust income is declared on SA107.  
As the trust has already paid tax on the trust income at 45%, anyone who pays tax a lower rate or no tax at all can claim a repayment of the tax already deducted on their behalf by the trust.  
Only where an individual pays tax in their own right at 45%, would there be no refund, as the correct amount of tax was deducted.
Thank you.

Exactly how do I claim tax back as a lower rate tax payer using the on-line self assessment. What selections do I make in the "Tailor Your Return" section and then which fields on the return itself do I complete? Thanks

Hi Dave,
You cannot file online if you have trust income. You will need to  file a paper return or buy 3rd party software.
Thank you.

Is it acceptable to file an online self-assessment return for all incomes apart from income from a trust, and submit a paper SA107 for the trust income element? Thanks

Hi,
No. The whole tax return in it's entirety must be submitted in the same format. To be able to submit a tax return online that includes the trust section, will require that you buy a commercial tax return and using your government gateway user ID and password, submit that return by 31 January.
Self Assessment commercial software suppliers
Paper tax returns can be downloaded using the link below and should be submitted by 31 October.
Self Assessment tax return forms
Thank you.

I would welcome advice on the treatment of Income from the estate of a deceased person (my Mother). It relates entirely to savings income and dividend income (box 17 & 18) on SA107. I have been provided with the figures from the solicitor handling my Mothers estate on a form R185. The amount I inherited from my Mother on these 2 areas was in 2023/24 and the solicitor has already paid the tax due on both amounts, before the distribution to beneficiaries, and it has been agreed with HMRC. When I append SA107 (box 17 & 18 completed) my tax liability for 23/24 (compared to what is was before appending SA107)increases significantly by approx 45% of the amount received from my mothers estate. Why am I paying further income tax over and above what was paid before the distribution to beneficiaries? Many thanks

Hi,
You need to declare the net interest received so that the tax deducted is taken into account. Any additional tax may be due if you are a higher rate taxpayer.
Thank you.