I just need some clarity.
I am a trustee for a discretionary trust, the assets are cash, and have not made any interest. The amount is under the Iht threshold.
My questions are-
1) If I were to pass on ten thousand pounds to one of the beneficiaries, ( which would be payment from the capital) do I need to report this? Will tax need to be paid on it by the trust and will the beneficiary need to report it if they currently are not earning? What forms do I need to fill out.
2) since the money in the trust account is under the IHt amount, and is not making any interest or income, should it be registered as a taxable trust or a non taxable trust.
3) since the amount is under the IHT threshold, should the amount have been taxed at the special trust tax rate of 44 percent, or is that only if it makes any income?