An interest in possession trust with two life tenants has the following income in tax year 2021-22:

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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 2021-22.

(b) Assuming that the trust income is divided equally between the two life tenants, calculate each life tenant's income from the trust in 2021-22.

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Taxation Finance Act 2021

ISBN: 9781292406725

27th Edition

Authors: Alan Melville

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Question Posted: Jan 31, 2024 02:01 AM

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An interest in possession trust with two life tenants has the following income in tax year 2021-22:

Question:

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

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ANSWER To compute the trustees income tax liability and each life tenants income from the trust well ...View the full answer

Taxation Finance Act 2021

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