188体育

The details are the same as in TSEM3474 except that the beneficiary also has the following personal income and gains

• Bank interest of 拢18,000聽
• Dividends of 拢16,000聽
• A discretionary distribution from the trustees of 拢4,200 and
• Personal chargeable gains (after taper relief, personal losses and the annual exempt amount) of 拢3,000.

The distribution from the trustees is not taken into account in computing the income tax liability of the vulnerable person for the purposes of calculating TLV1 and TLV2. TLV2 is therefore:

Income and Capital gain	Non-savings	Savings	Dividend	Capital gains	-
Income	-	拢18,000	拢16,000	-	-
Capital gains	-	-	-	3,000	-
Less personal allowance (拢12,500)	-	拢12,500	-	-	-
-	-	拢5,500	拢16,000	-	-
Savings chargeable at starting rate on 拢5000(0%)	-	0	-	-	-
Basic rate聽 @ nil rate 拢1000 available	-	拢500.00	拢500.00	-	-
Dividend rate (聽拢15,500 less聽 拢2000 ) dividend allowance	-	-	拢15,500	-	-
Taxable income	-	拢0.00	拢13,500.00	-	-
Chargeable at lower rate (20%)	-	-	-	-	-
Tax chargeable @ dividend rate (7.5%)	-	拢0.00	拢1012.50	拢0.00	拢1012.50
Tax chargeable @ capital gains rate (10%)	-	-	-	拢300.00	拢300.00
TLV2	-	-	-	-	拢1,312.50

TLV1 is:

Income and Chargeable gains	Non-savings	Savings	Dividend	Capital gains	-
Income - actual	拢0	拢18,000	拢16,000	-	-
Income treated as arising to the beneficiary	拢20,000	拢5,000	拢10,000	-	-
-	拢20,000	拢23,000	拢26,000	-	-
Chargeable gains	-	-	-	拢3,000	-
Less personal allowance	拢12,500	-	-	-	-
Taxable income	拢7,500	拢23,000	拢26,000	-	-
Chargeable at savings rate (0% reduced amount as higher rate)	-	聽聽聽聽聽聽 拢500	-	-	-
Chargeable at basic rate (20%)	拢7,500	拢22,500	-	-	-
Chargeable at dividends rate聽@ 0% on 拢2,000	-	-	拢0	-	-
Chargeable at dividends rate @7.5% on 拢5,000	-	-	拢听375	-	-
Chargeable at dividend rate @32.5% on 拢19,000	-	-	拢6,175	-	-
Tax chargeable	拢1,500	拢4,500	拢6,550	-	拢12,550
Chargeable at capital gain聽rate (20%)	-	-	-	拢3,000	-
Tax chargeable	-	-	-	拢600.00	拢600.00
TLV1	-	-	-	-	拢13,150.00
Less TLV2	-	-	-	-	拢1,312.50
VQTI	-	-	-	-	拢11,837.50

The trustees鈥� liability is the same as shown in example 1 at TSEM3474 and the deduction that they can claim is TQTI - VQTI (拢14,810 - 拢11,837.50) = 拢2,972.50. Their liability is therefore 拢14,810 - 拢2,972.50 = 拢11,837.50.

The trustees must also ensure that they have paid enough income tax to cover the deemed deduction of tax on the distribution to the beneficiary (see TSEM3490).

The payment of 拢4,200 is treated as though a deduction has been made at the trust rate. The gross payment is:

拢4,200 x 100/55 = 拢7,636.36

and applying the trust rate at 45% gives a deemed deduction of 拢3,436.36.

The tax which can be used to cover this deduction (the 鈥檛ax pool鈥�) is income tax chargeable at the trust rate and dividend trust rate.