The deceased left the residue of his large estate to a discretionary trust. The estate took quite a few years to sort out and received interest and dividend income. The dividends were shown on the estate tax return and were taxed at 7.5%.
In 2017/18 the dividend income from the estate was distributed to the discretionary trust. The estate has provided an R185 for the trust showing the 7.5% tax credit.
Discretionary trusts tax dividends at 38.1%. I am trying to work out how to show the tax credit for the 7.5% that has already been paid on the income.
Does anyone know how to input the income on the trust tax return so as to obtain the benefit of the tax credit? Alternatively is there another way that this income should be taxed or declared? I have searched for technical information but I have not found the answer.
Thank you for any help that you able to offer.
Best wishes for your January busy time.