TSEM3771 - Trust income and gains: beneficiaries: beneficiary entitled to trust income - trust that trades or has rental income - business expenses
If the gross trust income is £10,000 and there are allowable trading or rental business expenses for tax purposes of £2,000, the trustees are taxable on the net profit of £8,000, as being in receipt of the net income. See TSEM3761.
»Ê¹ÚÌåÓýapp interest in possession (IIP) beneficiary is entitled to the income of the trust (not to receipts). In this context the trust income is £8,000 not £10,000, so the measure of the beneficiary's income is £8,000.