How to pay HMRC income tax on interest received on trustee account

I'm the trustee of my parent's will. Payable 50% to myself (Paid) and 50% to my daughter upon attaining 25. My daughter was 25 in June 2024 and the value of the inheritance PLUS the FULL AMOUNT OF THE INTEREST ON THE TRUSTEE SAVINGS ACCOUNT of approximately £5,000 has been passed to her. How do I pay the income tax on this interest to HMRC and do I need to complete any forms? Or alternatively, does this go thru my daughters Self Assessment Tax form for Tax year 2024/25? Also would this interest be part of the £500 interest allowed to be earned per annum without income tax being charged?

Hi hk1 K,
Most trusts do not pay Income Tax on income up to a tax-free amount (normally £500).
Tax is due on the full amount if the income is more than the tax-free amount.
The trust would declare the interest and pay the tax due and give your daughter a R185 statement of income from trusts.
Trusts and taxes
Your daughter would complete a Self Assessment tax return and include SA108, entering the values shown on the R185.
Any overpaid tax can then be refunded.
Please note that the HMRC online tax return does not cover the trust section.
Either a paper tax return or commercial tax return is required
Self Assessment commercial software suppliers
A government gateway user ID and password is required for submitting a commercial tax return.
Thank you.