Another tax problem for Trustees

11th July 2017

It has been confirmed that, in certain circumstances where a Discretionary Trust has incurred Trust Management Expenses, the online filing of the 2017 Trust Tax Return will understate the tax on dividend income brought into the ‘tax pool’. This in turn will overstate tax payable by the Trustees when distributions are made to beneficiaries.

To get around this issue , Trustees will need to manually calculate the ‘tax pool’ and file the 2017 Trust Return on paper where they are affected.

The complexity of the calculations will invariably mean that Trustees will need professional help to avoid unnecessary overpayments of tax to HMRC.



 
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