Dividend Waiver

We have inherited a trust which owns 40% shares in a private family company. The settlor of the trust owns 50% and his son 10%. The trust is discretionary. It appears that each year the settlor has taken a dividend from the company although the trustees have not. In effect a dividend waiver (?). When do the forum consider it OK for the trustees to waive their right to a dividend - if ever? what are the tax consequences of a waiver?

Joanne Davies
Simpson Wreford & Co

Even assuming the trustees have actually consciously waived the dividend, and considered all the tax and trust consequences, it sounds perilously like a GWROB to me.

Simon Northcott