The taxation of trusts continues to evolve. This blog sets out the situation that applies from 6 April 2024. Capital gains tax from 6 April 2024 The capital gains tax (CGT) annual exempt amount available to trustees is reduced to £1,500 from 6 April 2024. The annual exempt amount (AEA) is the amount of capital gains that trustees can realise during a tax year that is exempt from capital gains tax. Trustees also need to Read more…
Introduction In order for executors (administrators where the deceased died intestate) to deal with assets in a deceased’s estate, they will need to obtain the grant of probate (letters of administration in the case of intestacy). The term ‘personal representatives’ is used below to describe both executors and administrators. Currently, there can be delays of between 11 and 12 months in obtaining probate on an estate. This makes it more difficult for personal representatives to Read more…
Unincorporated clubs and associations Trustees of unincorporated clubs and associations who own property or other assets may be required to register their trusts on the Trust Registration Service (TRS). Whilst the deadline for registration of non-taxable trusts that were in existence on 6 October 2020 was 1 September 2022, we would recommend that trustees of unregistered trusts requiring registration consider registering as soon as possible to avoid potential HMRC enforcement action. Any trusts established after Read more…
Estates and trusts created by a will An estate and/ or a trust(s) created by a will may need to be registered on HMRC’s Trust Registration Service (TRS). Personal representatives’ and trustees’ responsibilities Personal representatives of an estate and the trustees of a trust(s) created in a will have different requirements as to when the estate or the trust may need to be registered on theTrust Registration Service. Whilst these are set out in HMRC’s Read more…
Trusts, a way of arranging property for the benefit of others, while still maintaining some control over it This is a brief guide to the different types of trust available and the terminology used around trusts. It focuses on trusts established under the law of England and Wales. Different principles and terminology can apply for trusts established under Scottish law – we will deal with these in a future blog. Professional advice should be Read more…
An update for trustees – one year on The trust registration deadlines We are now one year on from the 1 September 2022 trust registration deadline when most trusts in existence at 3 June 2022 were required to have been registered on the Trust Registration Service (TRS). Any trusts created after 3 June 2022 that require registration have 90 days from the date of the trust’s creation to be registered. Trustees of a trust which Read more…
There are some important changes to the taxation of trusts on the horizon. This blog summarises these changes and how they may affect trustees. Capital gains tax The capital gains tax (CGT) annual exempt amount available to trustees is reducing from 6 April 2023. The annual exempt amount (AEA) is the amount of capital gains that trustees can realise during a tax year that are exempt from capital gains tax. In 2022-23, the CGT Read more…
Our blog published in October 2022 provided details of HMRC’s penalties that they may levy against trustees who either fail to register a trust requiring registration on the Trust Registration Service (TRS) or who fail to maintain the trust’s details on the Trust Register once the trust has been registered. New guidance HMRC has now provided some further guidance around when a penalty may be issued and what to do should a penalty notice be Read more…
It is incredibly important to keep your trust register details up-to-date with HMRC It is important that trustees ensure that the details of their trust(s) held on the Trust Register are regularly reviewed and kept up to date. Any changes to the registered details must be updated within 90 days of the date of the change to avoid potential enforcement action by HMRC which could, potentially, result in the trustees being fined up to £5,000 Read more…
HMRC has added 2 factor authentication to government gateway accounts for extra security It seems that, at the start of October 2022, HMRC has added 2 factor authentication to government gateway accounts. When logging into to a government gateway account, for example to review or notify changes to details of a trust held on the Trust Register or to change the details used to set up the government gateway account, you may be asked for Read more…