It is known that income generated within a trust keeps its form of origin (I think section 7), for example dividends distributed to beneficiaries stay dividends, interest stay interest and so on. The beneficiaries are then taxed in their personal capacities on the income received either as dividends (by the way exempted) or interest (exempted to an amount of R21 000).

The question I now have is in the case of capital gains made by a trust. Normally 50% of the capital gain made by the trust is taxed at 40%, but what if the trust distribute the whole proceed to the beneficiaries, will it mean that the trust did not make the gain and that the individuals would pay capital gains on it, and

If so is it the same as other capital gains for individuals, only 25% inclusion less exclusion of R17500, taxed at the individuals progressive tax rate at a max of 40%