Are trustees of a trust entitled to a personal allowance?

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Multiple Choice

Are trustees of a trust entitled to a personal allowance?

Personal allowance is the tax-free amount available to individuals for income tax. Trustees are not individuals; for tax purposes they’re treated as a body of persons acting on behalf of the trust, so they don’t qualify for the individual personal allowance. The trust itself is treated as a separate taxpayer and is taxed on its income according to trust-specific rules. If income is distributed to beneficiaries, those individuals may be taxed on it and can use their own personal allowances, but the trustees themselves do not get a personal allowance.

Personal allowance is the tax-free amount available to individuals for income tax. Trustees are not individuals; for tax purposes they’re treated as a body of persons acting on behalf of the trust, so they don’t qualify for the individual personal allowance. The trust itself is treated as a separate taxpayer and is taxed on its income according to trust-specific rules. If income is distributed to beneficiaries, those individuals may be taxed on it and can use their own personal allowances, but the trustees themselves do not get a personal allowance.

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