Trusts—income tax and capital gains tax return
Trusts—income tax and capital gains tax return

The following Private Client guidance note provides comprehensive and up to date legal information covering:

  • Trusts—income tax and capital gains tax return
  • Requirement to submit a tax return
  • Income which can be excluded from the return
  • When gains do not need to be reported
  • Trustees of bare trusts
  • Trustees who have an agent
  • Standard rate band
  • Assets and funds contributed in year
  • Additional reporting for discretionary trusts
  • Supplementary pages to the tax return
  • more

FORTHCOMING CHANGE: The fifth anti-money laundering directive (5MLD) was published in the EU official journal on 19 June 2018 and came into force on 9 July 2018. The directive introduces broader access to information on beneficial ownership of companies and trusts, and tighter controls on certain transactions. In particular, all express trusts (not just those with a UK tax liability in a particular tax year) need to be registered either with the Trusts Registration Service (TRS) or other registration services under the extended rules. The directive must be transposed into national laws by 10 January 2020. The government ran a consultation from 15 April to 10 June 2019, seeking views on the transposition of 5MLD into national law. The Money Laundering and Terrorist Financing (Amendment) Regulations 2019, SI 2019/1511 were laid before Parliament on 20 December 2019 and are in force from 10 January 2020. See Practice Note: Fifth Money Laundering Directive—what’s changed?, Fifth Money Laundering Directive published in EU official journal, LNB News 22/06/2018 41 and News Analysis: Transposition of Fifth Money Laundering Directive into UK law—the pensions impact.

This Practice Note considers the requirement of trustees to submit a Trust and Estate Tax Return (form SA900) where a trust is liable for income tax and/or capital gains tax (CGT). For guidance on the tax rules relating to trust income,