⚠️ Hey, you are using an outdated web browser.
TaxScouts might not work with your browser. Upgrade here

Let us sort your Self Assessment online. £119, all in. Learn more


A trust is a type of tax entity that is usually set up to take care of a person’s assets during their life (for example, if they are too young to handle their own affairs), or after their death.

Trusts involve three different people:

  • the settlor (the person putting their assets into the trust)
  • the trustee (the person managing the trust)
  • the beneficiary (the person benefiting from the trust – can be the same as the settlor).

Do you pay tax if you’re the beneficiary of a trust?

  • for some trusts, you might need to pay tax for the income you receive from it via a Self Assessment tax return
  • for other trusts (called discretionary trusts), all income received by you is treated as though it has already been taxed at 45% – you might be entitled to a tax refund if you’re not an additional rate taxpayer (if you earn under £150,000)
  • you can read more about trusts and what to do on HMRC’s guide for trust beneficiaries

Hey there! We really hope this article helped you. Tax matters can be a dreadful topic at times. We know. That's why we started TaxScouts.
A stress-free way to getting your taxes done.

Have a minute? See how it works

More guides & useful information

Related terms

Let us sort your Self Assessment online. £119, all in.

That’s right. No matter how complicated it gets or why you need to do a return in the first place, it’ll cost £119 to get it done. That includes VAT, last-minute changes and all the support you may need.

How it works

Answer a few simple questions

And we mean a few. After a couple of minutes of answering questions online we’ll have everything we need to start working on your tax return.

Then get paired with a tax accountant

That’s right, you’ll be matched with a real accountant who is best suited to prepare your return. Plus, they’re on hand for questions whenever you need.

We file your Self Assessment for you

Once you’ve signed off your return, your TaxScouts accountant will file your return online with HMRC. That’s it! We told you it was simple.