An interest in possession trust with two life tenants has the following income in tax year 2020-21:

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Property expenses incurred in the year were £2,220 and general administration expenses amounted to £1,850.

(a) Compute the trustees' income tax liability for 2020-21.

(b) Assuming that the trust income is divided equally between the two life tenants, calculate each life tenant's income from the trust in 2020-21.

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Taxation Finance Act 2020

ISBN: 9781292360713

26th Edition

Authors: Alan Melville

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Question Posted: Feb 10, 2024 01:02 AM

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An interest in possession trust with two life tenants has the following income in tax year 2020-21:

Question:

Rents received Bank deposit interest Gilts interest received gross Dividends received 12,620 1,240 1,800 14,480

Step by Step Answer:

To compute the trustees income tax liability for the 202021 tax year and the income for each life tenant we will follow the below steps Trustees Incom...View the full answer

Taxation Finance Act 2020

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