Budget 2023: Increase to Trust Tax Rates

The Government’s Budget for 2023 has been released and includes some important tax implications for trusts.

The trustee tax rate has been increased from 33% to 39%. This change aligns the trustee tax rate with the top marginal tax rate. The new rate of 39% will take effect from the 2024/25 income year.

Trusts relating to deceased estates and care of disabled persons will not be subject to the new rate.

It is important to note that distributions to beneficiaries will still be taxed at the beneficiaries’ marginal tax rate, so this new tax rate only affects earnings retained by the Trust.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.

Rachel Collins

Associate
Wellington