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HMRC internal manual

Trusts, Settlements and Estates Manual

Trust income and gains: relief for overseas tax: beneficiary entitled to trust income

These instructions apply to taxed overseas trust income that is treated as a beneficiary’s income as it arises.

The trustees can claim, and receive, tax credit relief on behalf of the beneficiary. The amount is based on the beneficiary’s marginal rate and residence status. INTM367730+ onwards has instructions about tax credit relief.

If the trustees do not claim relief, the overseas income chargeable is the net amount after deduction of overseas tax.

A paying agent may have allowed provisional tax credit relief on overseas income. If that provisional relief is excessive, the beneficiary accounts for the excessive relief.