Offshore bond (under DGT) tax liability
I'm struggling with this case as I'm not sure how the tax liability should be calculated.
Initial investment of £54,000 in 2004 into an offshore bond and placed in DGT (discretionary trust) + taking 5% withdrawals (total of £39,150). Policyholder's children are trustees & beneficiaries (daughter UK resident and son Australian resident). Policyholder (UK resident) died in 2016/17. The plan has retained its value and was about £58k at policyholder's death.
I understand there is no IHT liability for the policyholder but trustees are subject to income tax at 45% (trust tax rate)?? Please help as there is not much info online..