Where an IIP beneficiary, who has income mandated to him and declares it on his own tax return (instead of the trustees declaring it) has paid some trust expenses personally, in particular costs that would be chargeable against income, may the beneficiary deduct the TME’s relating to income from the trust income that he is declaring on his tax return?
Sometimes an accountant’s fee invoice is sent to brokers for settlement with instruction that it be apportioned between capital and income in a certain fashion.
Presumably where income is mandated and paid out of the brokers’ nominees income account the benficiary must give permission for TME’s to be paid out of income?
Kevin Preston
Amherst & Shapland Limited