Trust and estate tax return

By Tolley
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The following Trusts and Inheritance Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Trust and estate tax return
  • Requirement to submit a tax return.
  • Income which can be excluded from the return
  • When gains do not need to be reported
  • Personal details and other information
  • Standard rate band
  • Assets and funds contributed in year
  • Additional reporting for discretionary trusts
  • Supplementary pages to the tax return

This guidance note covers the requirement to submit a Trust and Estate tax return and provides links to the relevant forms on the HMRC website. It includes commentary on some of the features of the tax return. The tax rules relating to trust income, expenses and capital gains and the calculation of tax liabilities are dealt with in other parts of this topic.

Requirement to submit a tax return.

The income and gains of trusts are assessed under the Self Assessment regime. If HMRC has issued a return or a notice to complete a return then trustees must complete a trust and estate tax return form SA900 .

If you are registered online to act as an agent for the trustees, you should be able to view whether a return has been issued (and the issue date, if applicable) when you sign in  to your HMRC online services. Alternatively, you can contact them by post or phone for the information.

If a return has been issued but it is not submitted, the trustees will be liable for a penalty, unless a formal application is made to have the return withdrawn.

HMRC may agree that the income of an interest in possession settlement can be reported on the personal tax return of the life tenant, meaning it will not issue tax returns in future years.

The trustees of bare trusts do not need to complete a trust and estate tax return: all of the income and gains are assessed on the beneficiaries and should usually be reported by them rather than the trustees. However, in certain circumstances it may be more convenient for the trustees to voluntarily register the trust for self assessment so that they may deal with income tax compliance on behalf of the beneficiaries. See the Bare trusts guidance note.

As confirmed in the HMRC Trusts

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