Why Form 1041 Qft Trustees 2023-2024

Hi folks and welcome back to Meaningful Money. Okay, we're still here at Lamona Cove. It'll be the last one from here, but you find a nice quiet spot and a bit of sunshine, and it's worth making the most of it. We're now moving on to the individual taxes as paid suffered by trusts and trustees, and dealing today with income tax. Now, you remember I said last time there is a special rate of income tax applicable to trusts. There are 80, and that is 50% on interest and on property, and it is forty two and a half percent payable on dividend income. So, there is also, you remember the standard rate band, so the first thousand pounds of income received by a trust is taxed at the usual rate, the individual rate if you like, so that's twenty percent on savings and rental income, and ten percent on dividends, but only the first thousand quid. Thereafter, it's at the full whack. And remember that little wrinkle that I said, that the thousand-pound band, if one settler, one person setting up a trust, actually sets up several trusts, then that thousand pound band is divided by all the trusts that he set up. So if you've set up five, then each trust will only get 200 quid in that standard rate band. That's something just worth remembering. So how income tax is dealt with depends on the kind of trust, so I'm going to deal with the most technical one first, which is discretionary trusts. Now, this is how it works. Let's say a discretionary trust received some interest from some money held in the bank. Well, that interest would be paid net of twenty percent tax, so they would keep twenty percent tax back. But given...