Whether you pay tax on investment trusts depends heavily on your geographic tax residency, the specific type of trust account you hold, and how the distributions are structured. In many tax jurisdictions, income distributions and dividends received from real estate investment trusts or unit trusts are treated as taxable ordinary income or dividend income, while capital gains realized upon selling shares can trigger capital gains taxes. However, if these investment trusts are held within tax-advantaged accounts—such as a Self-Invested Personal Pension or an Individual Savings Account—tax liabilities on capital growth or dividend distributions may be deferred or entirely eliminated. Investors must consult local tax regulations and professional advisors to understand specific obligations.