Trust income and gains: beneficiaries: beneficiary receives discretionary income payment from a resident trust
Trustees of a discretionary trust have the power to decide how to apply the trust funds. They may pay from trust income or capital.
Where the trustees make a discretionary payment from income, they usually give the beneficiary a formR185 (Trust Income). They have to do so if the beneficiary requests it.
TSEM3755 explains the position for discretionary income payments to company beneficiaries.
TSEM3756 explains the position for discretionary income payments from trusts that are not settlor-interested.
TSEM3757 explains the position for discretionary income payments from settlor-interested trusts.
TSEM3759 explains when a discretionary payment is considered to be made.
TSEM3781+ explains the position for capital payments from trusts.