an individual has been diagnosed with a terminal illness. Friends have set up a bank account/trust to fundraise for him. Will any payments made to him as charitable donations from the trust be subject to income tax on his behalf.?
I suspect not as he has not earnt the income, but can somebody confirm?!
Alwyn Davies
Replies (2)
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Not a charity
The trust, being for one individual will not be a charity.
The taxation in the hands of the individual will depend upon the nature of the trust. I doubt that there is a trust deed and so this is likely to be a bare trust with income taxed on the individual but I am only guessing at the nature of the trust.
income tax
they have just opened a bank account called Joe bloggs fund, with 2 trustees/signatories.....(Joe b is not a signatory)
they are going to be raising money through 2 events, then writing a chq out to Joe Bloggs for the amount raised....
Does this help?