Fundamentals of Tax 2025-2026: Trusts package

This package offers a comprehensive understanding of trusts and their application in business and investment structures from both a legal and tax compliance perspective. It spans foundational concepts, types of trusts, and the complexities of trust income and distributions, concluding with practical guidance on the preparation of trust income tax returns. The sessions are highly practical, incorporating case studies to help junior to mid-level practitioners apply trust-related principles in real-world scenarios.

Across the 4 sessions, participants will be able to:

Understand Trust Fundamentals

• Define what a trust is, including its historical and legal origins.
• Identify and describe the roles and responsibilities of parties involved in a trust (e.g., trustee, settlor, beneficiaries).
• Establish a trust structure within a business context using practical examples.

Differentiate Types of Trusts

• Explain key characteristics of discretionary and fixed trusts.
• Evaluate when and how various trusts are used in business and investment structures.
• Apply trust type selection within contextual scenarios.

Navigate Trust Income and Distributions

• Understand key dates and rules governing distributions of income and capital.
• Distinguish between accounting income, taxable income, and trust income.
• Apply these distinctions to practical case studies involving income distribution.

Prepare a Trust Income Tax Return (ITR)

• Recognise the differences between accounting profit and Section 95 distributable income.
• Understand the mechanics of trust distributions and reporting in beneficiary tax returns.
• Address common compliance issues including unpaid present entitlements (UPEs) and use of corporate beneficiaries.