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  • Tax on interest on trust funds held in a personal account

    I am the trustee of a Discretionary Will Trust (the settlor being my late father). The trust is registered. Until recently the trust funds were held in a personal savings account and attracted interest. I completed a *Trust* Self Assessment return and paid the required tax on the interest earned (as per the relevant Trust tax rates). The interest income also appeared against my personal tax account and, because the total interest earned personally was less than £1000 and therefore did not attract tax, I did not concern myself with it. However, last tax year, the Trust monies earned significantly over £1000 in interest. I will again declare the interest in the Trust SA Return and the trust will pay the required tax. The problem is that I do not also want to taxed personally on the Trust income. Can I inform HMRC that the interest on the particular account used for the trust should not be included on my 2022-23 tax calculation? I have looked into the form used to reclaim overpaid tax but there does not seem to be anywhere on it to explain why I would be reclaiming the tax. How best to avoid paying the tax twice? Thanks.