Continuing self assessment for a closed trust that held an overseas investment bond

Notepad_Phil

Hello all.

An overseas investment bond (Isle of Man) held by a friend's mother meant that the family had to register the associated trust with the TRS when the rules got changed a few years ago. Shortly afterwards the mother passed away and the bond was assigned across to the various children who then all cashed in their percentages.

At this point the trust was closed (mid 2023) via the TRS and I thought that they might get a further request to do a self assessment for the trust to cover the tax-year it was closed in, which they did receive in April 2024.

However they've now got a further request for a self-assessment for the trust to cover the 2024-25 tax-year, despite it being closed in the 2023-24 tax-year.

Personally I would have thought that the closure of the trust would have automatically signalled the end of the need for any taxation once we were in the next tax-year, but I'm assuming I must be wrong and they'll need to contact the hmrc to get these requests stopped, or is there another way?

Many thanks for any suggestions/knowledge of how to get these stopped.

Edited to add - this is definitely a notice to complete a self assessment tax return for the trust, it's not a personal self assessment.

poseidon1

My guess is  perhaps due to unfamiliarity with the form, whomever completed the 2023/24 SA900 trust tax return failed to complete question 21.4  on page 11 ( the date the trust was terminated).

That question then goes on to require further information be inserted at box 21.9 as to the reason for the termination.

If these details had   been overlooked, suggest a letter now be sent  to the trust inspector apologising for the omission, provide the relevant information and request they close their files and vacate the 2024/25 return.

I am assuming by the way, that a formal document ( deed of appointment ) was executed recording the termination of the trust, followed by the various bond assignments. It would be helpful to provide HRMC with a copy of the deed to support the reason for the termination.

Notepad_Phil

Many thanks for that, I think that a non-answer to question 21.4 might well be the cause.of this. The family had used an accountancy firm to help register the trust and that firm had filed what I believe was called a Nil return in a previous year when the family was asked to do a self assessment but there was no tax to be paid. I can well believe that when the family got last year's request they just asked them to file another Nil return with no thought given to a Q21.4.

poseidon1

Notepad_Phil said:

Many thanks for that, I think that a non-answer to question 21.4 might well be the cause.of this. The family had used an accountancy firm to help register the trust and that firm had filed what I believe was called a Nil return in a previous year when the family was asked to do a self assessment but there was no tax to be paid. I can well believe that when the family got last year's request they just asked them to file another Nil return with no thought given to a Q21.4.

If an accountancy firm handled the return, and knew the trust terminated in the year, then they are at fault  -you don't keep a dog and bark yourself.