- accumulated income
England, Walestrust income that the trustees have decided to add to the capital of the trust, rather than to pay out to (or for the benefit of) any of the beneficiaries (beneficiary) of the trust.Some trusts (called discretionary trusts) do not give any beneficiary an automatic right to the income (or capital) of the trust. Instead, the trustees have a discretion as to whether they give income or capital to each beneficiary. Discretionary trusts often give the trustees a power to accumulate some or all of the income, rather than to pay it out. This power may be restricted to an accumulation period if the trust is subject to the statutory rule against excessive accumulations.The decision to accumulate income does not alter the trust's UK tax position (that is, it remains income for UK income tax purposes). It affects only the trust law position.
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.
Look at other dictionaries:
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