Discretionery Trust Tax

A discretionary trust set up on or after 11 April 1994 becomes subject to a once-off 6% levy based on the value of the assets in the trust on the latest of the following events:

  • The date property is placed in settlement,
  • The date of death of the settlor, or
  • The date on which the principal beneficiaries of the trust all attain the age of 21.

The 6% charge is reduced to 3% where the trust is created under a will and where all of the assets of a discretionary trust are appointed within 5 years of the assets being transferred to the discretionary trust.

Following the trust becoming subject to the 6% levy, a 1% levy is payable on each year (except the year in which the 6% levy is paid) on the market value of the assets in the trust.

The 6% and 1% tax also include entities that are “similar in effect” to trusts for example foundations which do not require trustees.

We Are Here!

25 Herbert Place,
Dublin 2,
D02 A098,
Republic of Ireland.

T:+353-1-6766476
F:+353-1-6766783
E: info@noonecasey.ie