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Changes to Trust Tax Rate
Changes to Trust Tax Rate.
In April 2021, the top personal tax rate for income above $180k was increased to 39%. However, the top trust tax rate remained at 33%. The government of the day highlighted that this variance could cause arbitrage.
Last year, the government announced an increase to 39% effective April 2024 to "plug the tax gap." The current government has indicated that it will proceed with the increase for trusts and will also not lower the top tax rate for individuals this term.
This presents an opportunity for our clients with trusts on the merits of a PIE investment, which offers an 11% tax advantage.
Want to find out more? Simply give Mark Jones a call on 0800 404 202 or send him a message
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