Taxation of trusts—income tax and capital gains tax

Taxation of trusts—income tax and capital gains tax guidance:

This Practice Note explains how trustees of bare trusts are treated for income tax and capital gains tax (CGT) purposes. Although a bare trust is, in equity, a type of...

Practice Note

General principles For capital gains tax (CGT) purposes, trustees are treated as a single chargeable person in their own right (separate from the individual trustees...

Practice Note

Where an asset is acquired or disposed of otherwise than at arm’s length (ie there is a gift or a transfer at an undervalue), this is a disposal for capital gains tax...

Practice Note

HM Revenue and Customs [Insert HMRC address] [insert date] Dear [insert organisation name] We are writing to notify you of our joint election that the following property...

Precedents

FORTHCOMING CHANGE: As originally announced at Budget 2018, the government ran a consultation between 1 April and 1 June 2019 on proposals to curtail capital gains tax...

Practice Note

Whether a property transaction is an investment or trading (ie dealing) activity is of key importance to each of the parties to the transaction since it will dictate how...

Practice Note

This Practice Note deals with the main principles of income tax that apply to the beneficiary of a discretionary trust. An individual will be charged to income tax only...

Practice Note

This Practice Note sets out the general principles of income tax that apply to discretionary trusts, and any trusts where income may be accumulated. The income of such...

Practice Note

BREXIT IMPACT: As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an...

Practice Note

Broadly speaking, a life tenant is entitled to receive the income from an interest in possession (IIP) trust and that income will be taxed at the life tenant's marginal...

Practice Note

The trustees are together treated as if they were a single person (distinct from the individuals who are the trustees of the trust from time to time). An interest in...

Practice Note

FORTHCOMING CHANGE: As originally announced at Autumn Budget 2017 and followed up by written statement after Spring Statement 2018, plus an announcement in Budget 2018,...

Practice Note

FORTHCOMING CHANGE: As originally announced at Autumn Budget 2017 and followed up by written statement after Spring Statement 2018, plus an announcement in Budget 2018,...

Practice Note

Inheritance tax and personal injury trusts It is a common misconception among practitioners that using one type of personal injury trust or another confers some...

Practice Note

FORTHCOMING CHANGE: As originally announced at Autumn Budget 2017 and followed up by written statement after Spring Statement 2018, plus an announcement in Budget 2018,...

Practice Note

It is common for trustees or personal representatives (PRs) to run a property business. A property business is one which generates income from land (see below as to the...

Practice Note

It is possible for trustees or personal representatives to be trading. For example, if a self-employed trader dies, the personal representative might run the business...

Practice Note

This Practice Note sets out the special income tax and capital gains tax (CGT) treatment of trusts for disabled persons. For guidance on how to make a vulnerable person...

Practice Note

For general guidance on the special income tax and capital gains tax (CGT) treatment of trusts for disabled persons, see Practice Note: Taxation of trusts for disabled...

Practice Note

Capital losses arising to trustees are calculated in the same way as they are for individuals (for further guidance on capital losses for individuals, see Practice Note:...

Practice Note

Capital gains tax (CGT) rules have historically provided generous relief for business owners who dispose of their business. Previously relief was provided by way of...

Practice Note

The purpose of this Practice Note is to set out an overview of the key capital gains tax (CGT) reliefs and exemptions applicable to business assets which are available to...

Practice Note

This Practice Note highlights some features of the taxation of investment income which apply specifically to both discretionary and interest in possession trusts....

Practice Note

CORONAVIRUS (COVID-19): Payments on account of income tax by trustees (who are due to make a second payment on account by 31 July 2020) can be deferred until January...

Practice Note

Reasons for restructuring a trust Restructuring a trust may be undertaken for a number of purposes, including to: • restrict the class of beneficiaries • create specific...

Practice Note

The rules relating to settlor interested trusts are anti-avoidance rules, aimed at ensuring that a settlor cannot avoid tax on assets of which they are not fully...

Practice Note

The tables below provide a very brief summary of some of the main provisions relating to the income tax, capital gains tax and inheritance tax treatment of settlor...

Practice Note

This Practice Note outlines the rules governing expenses incurred by trustees running a trust. Tax deductible expenses As for individuals and trading organisations,...

Practice Note

CORONAVIRUS (COVID-19): Payments on account of income tax by trustees (who are due to make a second payment on account by 31 July 2020) can be deferred until January...

Practice Note

FORTHCOMING CHANGE: The EU Fifth Money Laundering Directive (5MLD) was published in the EU official journal on 19 June 2018 and came into force on 9 July 2018. The...

Practice Note
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