Taxation of Trust

I am a trustee for a "discretionary trust" set up in my fathers will.
The trust owns my fathers former home and it is let out.
I have been putting 40% of the rental income aside (40% being the
trust tax rate?). I am splitting the remaining 60% 30/30 between
maintainance/admin and 'spendable'.
I now have TWO potential court cases to deal with for the trust - one
against a former letting agent and one possesion claim against the
current Ts who are not paying rent and seem to be damaging the
property beyond 'wear & tear'.
The trust doesn't seem to have enough funds in the 'maintenance' pot
to cover the costs of these actions, so I'm hoping I can raid the
'tax' pot. I know some of the court fees etc are off-set-able against
tax, but don't know how this works. If the fees are (say) £85, does
that mean my tax liability is reduced by £85 - so I can pay it all
from tax - or does it mean my profit is reduced, thus saving £34 tax
which I can take from the tax pot?
Reply to
Loading thread data ...

Site Timeline Threads

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.