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  • Tessa Roberts
    Post count: 2046


    I’d love to be able to give you a logical explanation – but there isn’t one ๐Ÿ™

    I think it’s just one of those processes that you have to accept that this is the way it is done (hence the inclusion of the two examples so you can see the difference).

    When I took the exam, I learned the two methods separately so I could replicate them if needed.

    There’s a little more background in the J02 text, but nothing in the way of an explanation.


    Tutor for Expert Pensions.

    Post count: 64

    Hi Tessa

    On pages 21 and 22 of the study material are two examples of this.

    Not sure why there is the gross up calc, please can you explain?

    For IiP trust, it’s deducted then the net interest is grossed up.

    For the discretionary trust, it’s grossed up, deducted from dividend income and also taxed at 7.5%. I note it is allowable in calculating income chargeable and that it is set against dividend income first, but not quite sure of it’s application, I thought it’s simply deducted…

    Bit confused dot com!

    Your help will be much appreciated.


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