Trust tax across the UK: Scotland and Northern Ireland
The tax figures above are UK-wide, because Income Tax, Capital Gains Tax and Inheritance Tax on trusts are administered by HMRC across the United Kingdom (gov.uk/trusts-taxes, July 2026). What differs by nation is the underlying law of trusts and succession. Scotland has its own trust and succession law, and Northern Ireland has a separate but broadly similar system to England and Wales. Where a trust or estate crosses jurisdictions, it can be worth taking advice in each.
Sources and methodology
This page relies on named official statistics and primary guidance, verified in July 2026. Statistics are historical and can be revised in later releases; tax rates and thresholds are stated as at July 2026 and are subject to change.
Percentages describing year-on-year change are HMRC's own, as published in the December 2025 release. Figures are rounded as HMRC rounds them; small components may not sum exactly to totals.
Frequently asked questions
How much tax do trusts pay in the UK?
UK trusts and estates paid around £1.01 billion in Income Tax and £605 million in Capital Gains Tax in the tax year ending 2024, according to HMRC (Statistics on trusts in the UK, December 2025). Income Tax rose about 26% on the year while Capital Gains Tax fell around 23%. These are aggregate figures and may be revised in later releases.
How many trusts are there in the UK?
Around 157,000 trusts and estates filed a Self Assessment return in the tax year ending 2024, and roughly 121,000 trusts and estates registered on HMRC's Trust Registration Service in the 12 months to 31 March 2025 (HMRC, December 2025). Filing and registering are different measures, so the counts are not directly comparable.
What are the UK trust tax rates?
Discretionary and accumulation trusts generally pay 45% on non-dividend income and 39.35% on dividends above a standard rate band, while interest in possession trusts usually pay 20% and 10.75% respectively, after a small tax-free amount (gov.uk/trusts-taxes, July 2026, subject to change). The right rate depends on the trust type and its income.
Do trusts pay inheritance tax?
Many trusts fall within the Inheritance Tax relevant property regime. Assets added above the available nil-rate band can face a 20% lifetime charge where trustees pay, plus periodic ten-yearly charges and an exit charge of up to 6% on assets leaving the trust (gov.uk, July 2026, subject to change). How the rules apply depends on the trust and its history.
Why has trust Income Tax risen?
HMRC reports trust and estate Income Tax rose around 26% in the year ending 2024, to about £1.01 billion (HMRC, December 2025). In our view, higher income and interest rates lifting taxable income can be part of the picture, but the statistics do not attribute a single cause, and the effect on any individual trust varies.
Are trust tax figures different in Scotland and Northern Ireland?
The tax figures are UK-wide, as HMRC administers trust Income Tax, Capital Gains Tax and Inheritance Tax across the United Kingdom (gov.uk/trusts-taxes, July 2026). What differs by nation is trust and succession law: Scotland has its own system, and Northern Ireland is separate but broadly similar to England and Wales. Cross-border cases can benefit from local advice.
About Fairchild Oldfield
The Fairchild Oldfield team brings together estate planning, tax, independent financial advice and client care, working with families across England and Wales.
Fairchild Oldfield are estate planning specialists and will writers, not a firm of solicitors. This article is general information based on practical experience, not legal, tax or financial advice.
Important: This article is general information only and is not legal, tax or financial advice. Reading it does not create a professional relationship. It is based on the law of England and Wales, and other UK jurisdictions may differ. Statistics are drawn from HMRC official publications for the periods stated and may be revised; tax rates and thresholds are current as at July 2026 and are subject to change. Before acting, many people choose to seek advice from a suitably qualified professional, such as a solicitor, a STEP practitioner, an accountant, or an FCA-authorised financial adviser, who can consider your individual circumstances.
Related reading: our estate planning guide, an overview of the different structures in Trusts Explained, and a plain-language look at how trusts are taxed.
