Declaring trust

ANGLICANPAT

Am I right in thinking that I dont have to tell the taxman about any yearly increase in the Bailley Gifford Scottish Mortgage IT I set up for my grandchildren in a disc trust , when I complete my tax return?

Secondly,part of what the accountant is asking me to sign is permission that any refunds etc from taxman, are sent to his firm. Is that usual? Thanks

xylophone

disc trust ,

A discretionary trust?

See http://www.hmrc.gov.uk/trusts/trustee/responsibilities.htm

Secondly,part of what the accountant is asking me to sign is permission that any refunds etc from taxman, are sent to his firm. Is that usual? Thanks

Is the accountant also a trustee? Or is he administering the trust on your behalf? See above.

antrobus

ANGLICANPAT wrote: »

Am I right in thinking that I dont have to tell the taxman about any yearly increase in the Bailley Gifford Scottish Mortgage IT I set up for my grandchildren in a disc trust , when I complete my tax return?...

Correct, it doesn't go on your tax return. It goes on the tax return for the discretionary trust in question. If by "yearly increase" you mean dividend income, that is.

ANGLICANPAT wrote: »

...Secondly,part of what the accountant is asking me to sign is permission that any refunds etc from taxman, are sent to his firm. Is that usual? Thanks

It's perfectly normal.

ANGLICANPAT

Yes disc did mean discretionary, but that was my mistake sorry , I meant to type bare trust . Ive not heard anything from taxman that they need anything from me for it but once Ive got my own return sent off, Ill take a look and make sure Ive nothing to do about the grandchildrens bare trust.

Thanks for reassuring me regarding the accountant. First time using one as first time as a LL ! Pleased hes seemingly claiming Ive overpaid tax by a few hundred, although his schedule doesnt exactly show how he has arrived at that figure and Im puzzled as Id roughly worked out being a few hundred owing, yet have to sign the assessment form that everything is correct? Does that mean I have to ask him for all his workings out, and check them all? Wont that offend him and defeat my object of offloading work? I just provided gross total received for my old age pension, gross/tax/net figures for savings , gross rent paid for the one rental property , and allowable deductions on rental . He did the rest .

colsten

You are entitled to understand what your tax consultant submits on your behalf, especially if you sign you agree with his submission.

Using a tax consultant isn't simply offloading work, it is engaging (and paying for) a professional who is an expert in tax law. From what you are saying, this could have been a great engagement in your case.

Reaper

ANGLICANPAT wrote: »

Am I right in thinking that I dont have to tell the taxman about any yearly increase in the Bailley Gifford Scottish Mortgage IT I set up for my grandchildren

Not sure whether this got fully answered. Regardless of whether you mean increased contributions from yourself, capital growth of the fund, or dividends the answer is "no". The money is the childrens and any tax is up to them to pay. Even then unless you are talking large sums of money the chances are it will fall within their annual tax free allowance.