Taxation of trusts in Ireland

Taxation of trusts in Ireland - MBC Financial

Trusts are a popular way to manage and distribute assets in Ireland, and they are subject to both income tax and capital gains tax. MBC Financial understands that the tax treatment of a trust depends on its specific structure and the income or gains generated by it.

As a trustee, it is your responsibility to pay income tax on behalf of the beneficiaries, and the beneficiaries are then liable to pay the tax on the income they receive. This means that you will need to file an income tax return on behalf of the trust, and the beneficiaries must include the income received from the trust in their own tax returns.

In addition to income tax, capital gains tax is also applied to trusts based on the principle that the gains are taxed in the hands of the beneficiaries. As a trustee, you will need to pay capital gains tax on behalf of the beneficiaries, and the beneficiaries are then liable to pay the tax on the gains they receive. This means that you will need to file a capital gains tax return on behalf of the trust, and the beneficiaries must include the gains received from the trust in their own tax returns.

It’s worth noting that certain types of trusts, such as charitable trusts and certain types of employee trusts, may be exempt from income tax and capital gains tax. Additionally, there are reliefs and exemptions available for certain types of trusts, such as trusts for disabled persons and trusts for the maintenance of minor children.

At MBC Financial, we understand the complexity of trust taxation in Ireland and are here to help you navigate these laws and ensure compliance. Contact us for professional advice and guidance on how to manage the tax obligations of your trust.

Contact our team for a no-obligation consultation. The first meeting is at our expense.

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