A solicitor has asked me a number of questions in respect of Discretionary Trusts and the tax treatment on beneficiaries when distributed. First question is If a distribution of capital is made from a discretionary trust does it carry any potential income tax on receipt by the beneficiary? Second question If income received into the trust such as bank interest on an investment within the trust which tax is paid on within the trust is this classed as income or capital on distribution following the tax year in which the income is received by the trust. Third question Is distributed income liable to further potential income tax when distributed to the beneficiary. And fourth question if the trust makes a loan to a beneficiary out of trust assets and this loan is subsequently written off as irrecoverable what are the tax consequences on the beneficiary from an income tax point of view. I trust that these questions are self explanatory. And finally can anyone recommend a book on the subject.