Page 22 - GA Maclachlan Tax Guide 2024

TRUSTS

Tax rates
Tax rates applicable to trusts are as follows:
TYPE OF TRUST INCOME TAX RATES CAPITAL GAINS TAX
INCLUSION RATE
Normal Trust 45% 80%
Special Trust Same as those applicable to natural 40%
persons, except that the rebates and
interest exemptions do not apply

Note: A special trust is a trust created solely for the benefit of someone who
suffers from a disability that prevents such person from earning sufficient income
for their maintenance or from managing their own financial affairs� A special
trust can also be created by way of a testamentary trust whereby relatives of
the testator who are alive on the date of death are the beneficiaries� In order to
qualify as a special trust, the youngest of the beneficiaries must, on the last day
of the year of assessment of that trust, be under the age of 18 years�
Interest-free and low-interest loans to a trust
With effect 1 March 2017 loans made to a trust by
■ a natural person, or
■ at the instance of that person, a company in relation to which that person
is a connected person, and where that person or company is a connected
person in relation to the trust

the difference between the amount of interest incurred by the trust
(if any, otherwise nil) and the interest that would have been incurred
by that trust at the official rate of interest will be a continuing, annual
donation for purposes of donations tax, made by the lender on the last
day of the year of assessment of the trust

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