Trust Income & Beneficiary Entitlements – Trust Tax Fundamentals 2025

Dive into what is trust income and how it is taxed. Cover present entitlements, meaning of income under tax & trust law, & more.

In this unit, we cover:

• Taxation Framework of Trust Income

• Who gets taxed?

• Present entitlements

• Trustee distribution minutes

• “Net income” vs “Trust law income”

  • What is “net income”

  • When “net income” differs from “trust law income”

  • Proportionate vs Quantum approach (Bamford case)

• Taxing the beneficiary

  • Beneficiary is presently entitled

  • Minors

  • No beneficiary presently entitled

• Beneficiary disclaimers of entitlements

• Trustee assessments & PS LA 2015/2

Date recorded: 15 May 2025