Trusts have evolved over hundreds of years and are often seen as complex, esoteric structures used by the rich. However, trusts have many uses in ordinary family situations, but tax policy often drives the choice of the type of trust to use. Our Trust team is here to advise on what is right for you. We provide both compliance and advisory support to trustees of UK resident trusts and support to offshore trusts that have UK tax liabilities or that give rise to UK tax consequences for the settlor or beneficiaries. We also work with our PKF colleagues around the world to assist with non-UK entities that may be taxed as trusts within the UK tax regime.
UK tax compliance
Tax advisory
Commercial and charitable trusts
Non-UK entities
UK tax compliance
Simple or complex – we will assist trustees who are required to file a Self Assessment Tax return. We will first determine whether a return is needed or if there are grounds for having the Notice to File withdrawn. Besides the return, we will provide a tax certificate for any beneficiary of the trust who has taxable trust income to report on their own return. We also prepare Inheritance Tax Returns, when required.
Anti-Money Laundering Regulations now require trusts to be included on the Government Trust Register. We will guide trustees with the registration process and help maintain the register annually.
Tax advisory
The nature of a trust is that it does not remain constant. The terms to which trust property is subject may change by deliberate act or because it is specified in the trust deed. These changes can give rise to taxable events, involving multiple taxes. Our planning and advice will help trustees for these events and work out how best to reduce any tax liabilities.
Using trusts is a significant tool in the estate planning armoury. We help you understand the complex world of trusts and how they can help, or hinder, your overall tax planning strategy.
When a trust has served the purpose for which it was created, we can advise on how best to wind it up and help you through the process.
Commercial and charitable trusts
While trusts are often seen as private entities, they are also used for commercial or charitable purposes. Whatever the type of trust, we will help.
Commercial trusts include employee benefit trusts, share ownership trusts and pension funds. A trust can be introduced as a member of a Limited Liability Partnership.
Our Not for Profit team can help with all aspects of a charitable trust.
Non-UK entities
Sometimes foreign entities, such as Anstalts, Stiftungs, Usufructs and Establishments touch the UK tax net or have beneficiaries that are subject to UK tax. These entities do not fit neatly into the UK tax system. For some tax purposes they may be taxed as trusts but as companies for others. Capital Gains Tax gives rise to interesting issues as both treatments are possible within the same tax.
Advising on the strict tax treatment of such an entity and its beneficiaries involves a detailed review of its constitution. However, HMRC applies some standard treatments that may provide a convenient solution. We can help you understand the complexities and UK tax risks that arise with these entities.
