Trust
We are experienced in all aspects of trust taxation, including both UK and offshore trusts. We have links with a number of trust companies, both in the UK and overseas who can assist with the establishment and ongoing administration of trusts.
Trustees
We can assist trustees with the compliance requirements of UK trusts, including income tax filings and provision of tax information to beneficiaries following distributions from the trust.
Where the trust is based offshore, various anti-avoidance provisions exist in relation to distributions to beneficiaries (both deemed and actual) and these need careful consideration if punitive tax charges are to be avoided. We have a great deal of experience in this area and can step through all relevant provisions with trustees to ensure adverse tax consequences do not arise.
Beneficiaries
We can advise beneficiaries on the UK tax implications of receiving a distribution from a UK or overseas trust as well as the corresponding disclosure requirements on their income tax return.
We can also help with any deemed distributions that may arise through the use of assets owned by a trust by a beneficiary. This is a particularly complex and often overlooked area where significant tax liabilities can arise over several years if not looked at properly. In essence, any time a beneficiary is allowed to use an asset of a trust and does not pay full market value for that use, a deemed distribution can arise which may represent a taxable receipt in the hands of the beneficiary. Careful consideration is therefore needed, and the appropriate tax disclosures should be made. We can also advise on the steps necessary to correct prior returns where these provisions have been overlooked in the past.
