Do I need to declare my income for tax return on a trust?
piedwagtail
Posts: 2 Newbie
Hi All,
My father passed away three years ago and left an amount of money for me in a trust, which is managed by two trustees - my uncle and my mother. I receive an amount every month paid directly into my bank account. As far as I am aware the trust is a fixed amount of money made up from the sale of my dad's estate, etc. Besides it possibly accruing interest I am quite sure it is not earning any additional money through other avenues.
I am the main beneficiary, however if any money remains in the trust when I die this passes to my half brother and sister.
My mother contacted me recently stating that I need to provide details about my gross income (e.g. P60) so that a tax return can be filed for the trust. She and I are not on good terms and I would really rather she did not have access to this information if possible. If I pass it directly to my uncle I am almost certain he would share the details with her.
Am I actually legally required to provide information about my income for the tax return to be completed? This has been sprung on me at the last minute as I am led to believe that the return must be completed by 31st Jan.
Thanks in advance for any help and advice.
My father passed away three years ago and left an amount of money for me in a trust, which is managed by two trustees - my uncle and my mother. I receive an amount every month paid directly into my bank account. As far as I am aware the trust is a fixed amount of money made up from the sale of my dad's estate, etc. Besides it possibly accruing interest I am quite sure it is not earning any additional money through other avenues.
I am the main beneficiary, however if any money remains in the trust when I die this passes to my half brother and sister.
My mother contacted me recently stating that I need to provide details about my gross income (e.g. P60) so that a tax return can be filed for the trust. She and I are not on good terms and I would really rather she did not have access to this information if possible. If I pass it directly to my uncle I am almost certain he would share the details with her.
Am I actually legally required to provide information about my income for the tax return to be completed? This has been sprung on me at the last minute as I am led to believe that the return must be completed by 31st Jan.
Thanks in advance for any help and advice.
0
Comments
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See https://www.gov.uk/trusts-taxes/beneficiaries-paying-and-reclaiming-tax-on-trusts
https://professionalparaplanner.co.uk/development/taxation-of-trust-income/
Unless the Trustees are in some way responsible for your tax affairs, I can't see why they would need details of your income.0 -
Having had a look at the Gov guides as far as I can understand it appears to be a discretionary trust. Unfortunately the trustees (my uncle & mother) have not been particularly forthcoming with information about the nature of the trust due to our fraught relationship. I have seen my father's will but no documentation regarding the trust itself (assuming there would be something separate to the will).0
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I have seen my father's will but no documentation regarding the trust itself
What exactly does your father's will say regarding the Trust?0 -
piedwagtail wrote: »Having had a look at the Gov guides as far as I can understand it appears to be a discretionary trust. Unfortunately the trustees (my uncle & mother) have not been particularly forthcoming with information about the nature of the trust due to our fraught relationship. I have seen my father's will but no documentation regarding the trust itself (assuming there would be something separate to the will).
- Income up to £1,000pa - Dividend 7.5% Other Income 20%
- Income over £1,000pa - Dividend 38.1% Other Income 45%
The trust has no income tax free allowance but does have a £6,000 CGT allowance. CGT is paid at the higher rate of 20% and 28%.
If trust income is paid to you then the trust should provide you with a tax credit voucher stating the tax already paid and if the rate you would pay is lower you can then claim a refund from HMRC.
As Xylophone says the tax the trust pays has nothing to do with your tax status.0
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