Trust accounts ― considerations

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance

Trust accounts ― considerations

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
imgtext

Overview

This guidance note discusses the duties of trustees in respect of preparing accounts and accounting to the beneficiaries and why the preparation of trust accounts is essential in a well managed trust.

This guidance note deals with the position in England and Wales only. See Simon’s Taxes I5.8 for details of the provisions affecting Scotland and Northern Ireland.

Duty to prepare trust accounts

Trustees have a duty to account to the beneficiaries for their financial administration of the trust fund. However, there is no statutory duty to prepare accounts.

Consequently, trustees have much flexibility in how their duty is to be fulfilled. Where professional trustees are acting they will be required by the regulations of their professional bodies to provide adequate accounts of their transactions, but even then, there is no mandatory format for this information.

The Society of Trust and Estate Practitioners (STEP) has published STEP Accounting guidelines for trusts and estates, which cover best practice and sample presentations.

Who is entitled to see the accounts?

Who is

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Powered by Tolley+

Popular Articles

Bad debts

Bad debtsBad debts usually arise where goods or services have been provided to a customer, for which payment has not been received within a reasonable or specified time period, or for which the customer is unable to pay. It is necessary to determine the quantum of relief that can be claimed for bad

14 Jul 2020 15:34 | Produced by Tolley Read more Read more

BPR ― trading and investment businesses

BPR ― trading and investment businessesIntroductionThe basic qualification rules for business property relief (BPR) are illustrated in the Flowchart ― trading or investment business for BPR purposes.For an overview of BPR, see the BPR overview guidance note.Relevant business propertyThe main

14 Jul 2020 15:36 | Produced by Tolley Read more Read more

UK VAT invoice requirements

UK VAT invoice requirementsThis guidance note provides details of the information that must be shown on a valid tax invoice. Businesses supplying goods and services that are liable to the standard or reduced rate of VAT are required to issue a tax invoice to another VAT registered person.If the

14 Jul 2020 13:46 | Produced by Tolley Read more Read more