Taxation of trusts—income tax and capital gains tax

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Practice notes
An offshore trust is any non-UK resident trust. The liability of trustees of an offshore trust to UK inheritance tax (IHT) is not dependent on the...
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Produced in partnership with Jenny Wilson-Smith and Emma Haley of Boodle Hatfield 14th Oct
Practice notes
Liferent trustsA liferent trust (or trust liferent) is a trust which, when settled, confers a use and income benefit, or both, in the trust property...
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Produced in partnership with Peter Murrin of Turcan Connell 13th Oct
Practice notes
The term 'relevant property' defines a category of trust property which is subject to a special regime for inheritance tax (IHT). As described in...
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26th Sep
Practice notes
Offshore income gains (OIGs) are gains realised on the disposal of interests in offshore funds which are either:•non-distributor offshore funds, or...
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26th Sep
Precedents
This Deed of Appointment is made on [date] by [trustee] of [address] and [trustee] of [address] (the Trustees).Background(A)This Deed is supplemental...
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26th Sep
Precedents
This partial deed of revocation is made on [date] by [donor] of [address].1I granted a Lasting Power of Attorney for [Financial Decisions/Health and...
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26th Sep
Practice notes
A trust is formed either by lifetime gift or on death when a person (the settlor) transfers assets to another person or persons (the trustees) to hold...
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Produced in partnership with Mourant Ozannes and Carey Olsen 26th Sep
Practice notes
When you advise an individual on cross-border issues or offshore tax planning, it is important to establish the 'situs' (ie location) of the assets...
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25th Sep
Practice notes
On the face of it, there would appear to be no specific impediment, if there is no reason to suppose that a person is without capacity, in them...
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25th Sep
Practice notes
Where a beneficiary either:•is a minor (ie under the age of 18) and unmarried or•has attained majority or has married under that date but is required...
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25th Sep
Practice notes
This Practice Note provides guidance on Cayman Islands STAR trusts. For general information about the Cayman Islands, see Practice Note: Private...
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25th Sep
Practice notes
This Practice Note outlines Bermuda trust law and focuses upon its unique features and recent reforms, such as Bermuda's regime for private trust...
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25th Sep
Practice notes
Trust litigation has been classified as being of three types:•a dispute as to the trusts on which trustees hold the subject matter of the settlement•a...
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25th Sep
Practice notes
The issue of sham is most likely to be raised by the settlor's creditors or former spouse if the settlor is involved in matrimonial proceedings, who...
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25th Sep
Practice notes
When trustees are engaged in trust litigation, issues often arise as to how their litigation costs are to be funded. A Beddoe application is the best...
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25th Sep
Practice notes
Duty to distribute to the correct beneficiariesOn the termination of the trust, the trustees are under a duty to distribute the trust assets to the...
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25th Sep

Most recent Taxation of trusts—income tax and capital gains tax content

Practice notes
FORTHCOMING CHANGE: As originally announced at Budget 2018, the government ran a consultation between 1 April and 1 June 2019 on proposals to curtail...
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25th Sep
Practice notes
Reasons for restructuring a trustRestructuring a trust may be undertaken for a number of purposes, including to:•restrict the class of...
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25th Sep
Practice notes
For general guidance on the special income tax and capital gains tax (CGT) treatment of trusts for disabled persons, see Practice Note: Taxation of...
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25th Sep
Practice notes
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...
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26th Sep
Precedents
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...
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26th Sep
Practice notes
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...
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26th Sep
Practice notes
This Practice Note sets out the general principles of income tax that apply to discretionary trusts, and any trusts where income may be accumulated....
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26th Sep
Practice notes
It is common for trustees or personal representatives (PRs) to run a property business. A property business is one which generates income from land...
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26th Sep
Practice notes
It is possible for trustees or personal representatives to be trading. For example, if a self-employed trader dies, the personal representative might...
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Produced in partnership with Paul Davies of Clarke Willmott 26th Sep
Practice notes
This Practice Note outlines the rules governing expenses incurred by trustees running a trust.Tax deductible expensesAs for individuals and trading...
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26th Sep
Practice notes
This Practice Note highlights some features of the taxation of investment income which apply specifically to both discretionary and interest in...
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26th Sep
Practice notes
Conversion into sterlingIt is a basic rule that, in order to calculate the UK tax, all income and gains must be expressed in sterling. Where income is...
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26th Sep
Practice notes
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...
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26th Sep
Practice notes
General principlesFor capital gains tax (CGT) purposes, trustees are treated as a single chargeable person in their own right (separate from the...
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26th Sep
Practice notes
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...
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26th Sep
Practice notes
FORTHCOMING CHANGE: As originally announced at Autumn Budget 2017 and followed up by written statement after Spring Statement 2018, plus an...
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26th Sep
Practice notes
Capital losses arising to trustees are calculated in the same way as they are for individuals (for further guidance on capital losses for individuals,...
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26th Sep
Practice notes
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...
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26th Sep
Practice notes
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...
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26th Sep
Practice notes
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...
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26th Sep

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