What is a trust calculator?

A trust calculator helps you estimate trust tax, inheritance tax liability, and trust fund growth. It's an essential tool for UK estate planning and understanding the tax implications of setting up a trust.

How is trust tax calculated in the UK?

Trust tax in the UK is calculated based on trust type and income level. Discretionary trusts pay tax at 20-45% on income and gains. Bare trusts pass income to beneficiaries who pay tax at their marginal rate. Interest in Possession trusts have special rules.

What are the different types of trusts in the UK?

The main UK trust types are: Bare Trust (beneficiary owns assets), Interest in Possession Trust (beneficiary gets income), Discretionary Trust (trustees decide distribution), and Mixed Trust (combination of types). Each has different tax implications.

Is inheritance tax payable on trusts?

Yes, trusts are subject to inheritance tax in the UK. Trusts pay tax on assets over the nil-rate band (£325,000 in 2026). Discretionary trusts also pay periodic charges (6% every 10 years) and exit charges when assets leave the trust.

Trust Calculator UK - Calculate Trust Tax & Growth in GBP (£)

📝 Complete Guide to Trusts in the UK

This trust calculator UK helps you understand the tax implications and growth potential of different trust structures. Trusts are essential estate planning tools for UK residents, offering tax efficiency and asset protection.

🏦 What is a Trust?

A trust is a legal arrangement where assets are held by trustees for the benefit of beneficiaries. In the UK, trusts are commonly used for:

Inheritance tax planning
Asset protection for children
Charitable giving
Estate planning
Business succession

📊 UK Trust Types

Bare Trust: Assets held for beneficiaries who have immediate rights. Income taxed at beneficiary's rate. Most tax-efficient for basic rate taxpayers.
Interest in Possession Trust: Beneficiary receives income but not capital. Income taxed at beneficiary's rate. Trustees manage capital.
Discretionary Trust: Trustees decide on distributions. Subject to higher tax rates (20-45%). Regular periodic charges apply.
Mixed Trust: Combination of different trust types with different tax treatments.

💰 UK Trust Tax Rates (2026)

Income Tax: 20% basic rate, 40% higher rate, 45% additional rate for discretionary trusts
Capital Gains Tax: 20% for trusts (standard rate), 10% for certain assets
Inheritance Tax: 40% on assets over £325,000 (nil-rate band)
Periodic Charges: 6% every 10 years for discretionary trusts
Exit Charges: Up to 6% when assets leave the trust

📈 Inheritance Tax and Trusts

Trusts play a crucial role in IHT planning in the UK:

Assets placed in trusts are outside your estate for IHT purposes
Qualifying trusts can reduce IHT liability by up to 100%
Nil-rate band (£325,000) applies to trusts every 10 years
Regular gifts to trusts use your annual gift allowance

📊 UK Trust Statistics (2026)

Over 1 million trusts registered in the UK
Average trust value: £350,000
Discretionary trusts: 45% of all trusts
Bare trusts: 30% of all trusts
Interest in Possession: 25% of all trusts

⚡ Trust Planning Strategies

Use nil-rate band: Transfer up to £325,000 into trusts tax-free
Regular gifts: Use annual £3,000 gift allowance
Marriage allowance: Transfer nil-rate band between spouses
Charitable trusts: Tax-efficient giving
Trust registration: Register with HMRC by 31 January after trust creation

⚠️ Important Considerations

Trust tax rules are complex – always consult a professional
Trust registration is mandatory for most UK trusts
Trustees have legal responsibilities to act in beneficiaries' best interests
Trust changes may trigger tax charges

Trust Calculator UK

📊 Trust Details

📊 Trust Tax Breakdown

📈 Trust Fund Growth Projection