Discretionary trust tax of 6% applies to the value of the trust fund on the creation of the trust and annual tax of 1% applies to value of the entire fund each year for the duration of the trust. Can a beneficiary of a trust subsequently offset discretionary trust tax as a credit against capital acquisitions tax when the beneficiary receives the proceeds of the trust?
I did. The first sentence is what the tax adviser provided. The adviser couldn't provide an answer to the question on offsetting DTT as a tax credit against CAT. Thanks for your response.
- The property going into the trust
- The death of the person who puts the property into the trust
- The youngest beneficiary (who are offspring) turning 21
Thereafter it's 1% per year.
If the property is paid out within 5 years of the 6% charge, half of it is refunded.