A trust is a separate legal entity and pays varying rates of tax depending on the specific type of trust.

Help with

• Calculating the trust’s tax liability
• Reviewing the payments on account
• Agreeing the trust’s tax position with HMRC
• Preparing certificates of income for the beneficiaries
• Completing tax repayment claims for the beneficiaries

If the trust is in receipt of rental income, this will need to be reported to HMRC. How the tax is calculated and the income is distributed to the beneficiaries, depends on the type of trust.

If a trust sells residential property, an online return must be made to HMRC within 60 days of the completion date of the sale of the property.

Help with

• Annual rental accounts
• Tax implications of holding a property in trust
• Distributing rental profits to beneficiaries
• 60-day CGT reporting for UK residential property
• Tax advice when selling or gifting land or property

Trusts are subject to their own capital gains tax (CGT) regime and have their own CGT allowance.

Different CGT rates apply depending on the type of asset disposed of.

In some instances, it may be possible to defer a CGT charge in connection with a trust.

Help with

• Reporting and calculating capital gains tax
• Identifying and claiming reliefs
• Maximising capital losses
• Deferring tax and completion of holdover elections
• Identifying exempt assets
• 60-day online reporting

Did you realise that when you first set up a trust, distribute capital to beneficiaries or even wind up a trust, there may be an immediate lifetime inheritance tax charge.

Some trusts are also liable to an IHT charge every 10 years.

Help with

• Identifying and reporting IHT charges
• Completion of inheritance tax returns
• Calculating IHT liabilities
• Tax planning for IHT charges

Tax planning is equally as important for trusts as it is for individuals. There are numerous ways to plan for and mitigate tax charges for both the trust and the beneficiaries.

Help with

• Planning for and reducing tax charges
• Tax effective distribution of income
• Advancing capital to the beneficiaries
• Mitigating the tax charges on the sale or transfer of assets to the beneficiaries

Tax enquiries can be particularly stressful and unpleasant, especially if you have no experience of dealing with them. Without professional representation, it may mean that the enquiry takes longer to settle and could result in you paying more tax than is necessary.

Help with

• the matter being investigated so that any issues can be corrected at an early stage.
• Reviewing any submissions made to HMRC and identifying any inaccuracies or omissions
• Dealing with matters with HMRC on behalf of the trust
• Advising on and calculating any interest and penalty charges
• Handling negotiations with HMRC
• Agreeing the trust’s tax liability with HMRC and concluding the enquiry
• Applying for a closure notice from HMRC confirming that matters have been settled