TSEM5954 - Trusts for particular purposes: the Thalidomide Trust - payments to beneficiaries up to 4 August 2004
»Ê¹ÚÌåÓýapp Thalidomide Trust is a charitable trust. Charitable trusts are not taxed on their income, but payments to beneficiaries still fall within the normal rules.
Up to 4 August 2004, income payments from the Thalidomide Trust to beneficiaries were discretionary. As such they were subject to the same rules that govern payments from all discretionary trusts (TSEM3755-3756).
Income payments from the Trust counted towards the beneficiaries taxable income and reduced their level of entitlement to tax credits.
»Ê¹ÚÌåÓýapp beneficiaries were taxed on the payments at their marginal rate of tax with credit given at 34% (40% from 6 April 2004) under ICTA/S687(1) and (2).