asked the Chancellor of the Exchequer why trustees' and accountants' fees are not allowed as expenses against the income of a trust, thus causing beneficiaries to pay tax on income they never receive; and if he will remedy the position.
It has been decided by the courts that a beneficiary's income from a trust for the purposes of a claim to repayment of Income Tax is his share of the income of the trust remaining after deduction of the expenses of management. I see no ground for changing the law.
Will the Chancellor say why he allows the agents' fees for the collection of rents to be charged as expenses against Income Tax, and yet will not allow accountants' fees for the collection of dividends?
This is a question of the beneficiaries. The charge of accountants' fees is probably a charge on the trustees and not on the beneficiaries.