The tax rules surrounding Trusts can be complicated. To ensure that you do not incur any penalties from HM Revenue and Customs (HMRC), we can help guide you through the process and provide tax advice for trustees in a number of situations. For example, on the commencement and termination of a Trust and during a Trust’s lifetime.
Tax advice during the commencement of a Trust
When setting up a Trust a number of tax issues should be considered. For example, inheritance tax implications, deadlines, maximising tax reliefs etc. The right advice can help you decide whether to create a Trust or not. It can also help you understand the tax rules which need to be complied with during a Trust’s lifetime and the advantages and disadvantages of using a Trust.
If you are a Trustee, it’s your duty to make sure you fully understand and comply with the tax rules for a Trust.
During the commencement of a Trust it’s important to make sure the right information is given to the right tax office. By taking professional advice you can make sure that you fully understand the tax rules for a Trust, leaving you more confident to manage the Trust.
Our specialist Trust team can save you time and stress when creating a Trust by providing tax advice for trustees which covers:
- Inheritance tax changes and the relevant reliefs available;
- Completing the relevant inheritance tax accounts;
- Capital gains tax;
- Registering the Trust for income tax and capital gains tax.
Providing tax advice for trustees can reduce the burden on you and your trustees and reassure you that the Trust is being managed in the best interest of the beneficiaries.
Tax advice during the Trust’s lifetime
Many Trusts are subject to a self-assessment regime for income tax and capital gains tax. As a result, the trustees will need to ensure they have:
- Completed and filed their tax returns;
- Paid any necessary payments on account of tax within the required timeframe;
- Balanced any payments that are due within the required timeframe;
- Pay any inheritance tax (if required).
Our specialist team can make sure the tax man is kept happy by helping you to:
- Make sure all details are submitted correctly;
- Pay the correct tax for your Trust;
- Provide beneficiaries with the correct information if they have received payments to make sure that any refunds available are claimed;
- Consider the inheritance tax for the Trust and reduce tax as far as possible;
- If inheritance tax is payable, help you complete the calculations and file accounts within the required deadlines.
By helping you and providing tax advice for trustees, you and your trustees can not also save time and stress but have the peace of mind that the correct tax has been paid.
Tax advice when terminating a Trust
When terminating a Trust it’s important to avoid the likelihood of conflicts in the future by ensuring that, as a trustee, you are not liable for any payments once all of the trust assets have been transferred to the beneficiaries.
Our team can help you:
- Make sure that all taxes are paid and settled;
- Save tax by considering the capital gains tax position when assets are being passed to the beneficiaries;
- Advise on any inheritance tax implications for the termination of the Trust;
- Finalise any necessary accounts for filing with HMRC.
Throughout any work, our specialist team will ensure that you fully understand the tax advice provided and that it is tailored to your individual circumstances. When it comes to costs, these will be discussed with you at the beginning to ensure that you don’t have any surprises later down the line.
For more information on tax advice for trustees please contact the Trusts team via our contact form or call us on 0161 475 7676.