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Prudential CPD compilation – Discretionary Trust Taxation

Tax Trust and ISA news for Financial Advisers and Paraplanners

5 Aug 2019

Prudential CPD compilation – Discretionary Trust Taxation

It's simple to explain to a client when there's no Inheritance Tax (IHT) to pay at outset on a lifetime gift. But can you explain to a client what the ongoing IHT implications are of using a discretionary trust? The relevant property regime is complex and if you don't understand it, you could inadvertently cause a tax charge, or miss an opportunity to avoid one.

30 minutes of structured CPD 

The articles written by Prudential below cover:  

  • An awareness of what circumstances IHT can apply to trusts under the relevant property regime
  • An understanding how entry, periodic and exit charges are calculated and who pays the tax when these events arise
  • An understanding of the interaction of chargeable lifetime transfers and potentially exempt transfers and how this affects the taxation of discretionary trusts.

CPD certificate 

To get your CPD certificate after you've read the articles, you need to visit Prudential’s Test Centre  and take the test.

Article one: Discretionary trust taxation

A discretionary trust is one where the trustees can accumulate income or pay it at their discretion. Normally the trustees can choose from a wide class of beneficiaries (excluding the settlor) to whom they distribute the trust funds.  

Takes 16 minutes to read >>  

Article two: Gifting and Inheritance Tax

Learn about Potentially Exempt Transfers (PETs) and Chargeable Lifetime Transfers (CLTs), their interaction with each other and the impact these gifts have on IHT.   

Takes 14 minutes to read >>

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