Unused tax pool on cessation

Trusts Discussion
1

What happens when a discretionary trust has ceased but not all of its tax pool would have been used by tax credits on previous discretionary payments? I have a trust that has ceased but around £360 of the tax pool would have been unused and I’m wondering if it’s possible to claim that back and if so, how?

Many thanks.

2

This can’t be claimed back unfortunately. Any credits within the pool when the trust is wound up are lost. It’s common planning for trustees to make sufficient income distributions before the trust is wound up to utilise the tax credit.