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Last year the Labour Government announced an increase in the tax rate for Trusts to 39% as from 1 April 2024.
      
As of today, we have not heard any advice from the National led Government that this will NOT go ahead.
      
From 1 April 2024, taxable profits in a Trust will be taxed at 39% unless allocated to beneficiaries who have lower marginal tax rates.
      
Also if you have a Company with a Trust as a shareholder, any dividends declared after 1 April 2024, the Trust will have additional tax to pay on that dividend of 6% (unless allocations are made to beneficiaries).
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Our team are reviewing clients who are in this position, with the intent of passing on past profits at the best possible tax rate, before the new tax is implemented. So please watch out for correspondence from us explaining this to you and what needs to happen.
      
We would also recommend a review of your present structure and a possible move to help ease the tax cashflow pressures going forward.
      
If you have any questions, please contact Aaran or Marko.
      

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