What is the tax rate for dividends from a trust when income exceeds £1,000?

The tax rate for dividends from a trust when income exceeds £1,000 is 38.1%. This rate applies to dividend income that goes beyond the threshold established for trusts, marking it as significant income.

When dealing with trust income, dividends are subject to specific tax treatments designed to account for the unique nature of income distributions from these entities. The rate of 38.1% includes the regular income tax and applies to the dividend distribution, effectively capturing the higher rate of tax applicable at this income level. Individuals receiving this type of income need to be mindful that trust distributions are treated distinctly under tax law compared to personal income, particularly regarding dividend taxation rates.

Understanding this specific rate is crucial for financial planning and tax preparation, as it impacts the total tax liability of beneficiaries receiving dividends from a trust.