Trusts earning less than $10,000 likely to be exempt from tax hike

Nicola Willis said the committee's advice was in line with govt thinking. (Image: Getty)

Mon, 11 Mar 2024

The government has detailed how it wants to exempt low-income earning trusts from a tax hike due to take effect on April 1.It proposes to ensure trusts that earn less than $10,000 a year continue to be taxed at 33%, leaving those that earn more than this sum to be taxed at the new trustee rate of 39% on all their income.Last year, the Labour government decided to lift the trustee tax rate from 33 to 39% from the 2024-25 tax year.It wanted to ensure the trustee rate aligned with the relatively new top income tax rate of 39%, applied to income ov...

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