In Canada, if the trustee is making a distribution of income, the trust gets a deduction from taxable income for the income distributed out. The beneficiary is then issued an information slip (T3 slip) showing the types of income being distributed out (eg. dividends, capital gains, other income etc) and reports it on their own tax return. The income retains its character for the beneficiary.
Thanks Simon, really helpful. Is there a video where you cover the tax liability for bond income held in unit trusts within a discretionary Trust?
In Canada, if the trustee is making a distribution of income, the trust gets a deduction from taxable income for the income distributed out. The beneficiary is then issued an information slip (T3 slip) showing the types of income being distributed out (eg. dividends, capital gains, other income etc) and reports it on their own tax return. The income retains its character for the beneficiary.
UK only. Hope this is useful for some but pass on by if you're anywhere else
Proper rigmarole