Trust accounts ― considerations

Produced by a Tolley Trusts and Inheritance Tax expert

Trusts and Inheritance Tax

Guidance

Overview

This guidance note discusses the duties of trustees in respect of preparing accounts and accounting to the beneficiaries and why the preparation of trust accounts is essential in a well managed trust.

This guidance note deals with the position in England and Wales only. See Simon’s Taxes I5.8 for details of the provisions affecting Scotland and Northern Ireland.

Duty to prepare trust accounts

Trustees have a duty to account to the beneficiaries for their financial administration of the trust fund. However, there is no statutory duty to prepare accounts.

Consequently, trustees have much flexibility in how their duty is to be fulfilled. Where professional trustees are acting they will be required by the regulations of their professional bodies to provide adequate accounts of their transactions, but even then, there is no mandatory format for this information.

The Society of Trust and Estate Practitioners (STEP) has published STEP Accounting guidelines for trusts and estates, which cover best practice and sample presentations.

Who is entitled to see the accounts?

Who is

Continue reading

To read the full Guidance note, register for a free trial of Tolley+™

TAKE A FREE TRIAL

Popular Articles

Personal Tax

Self assessment ― amendments and corrections

Self assessment ― amendments and correctionsOnce a self assessment tax return has been filed, both HMRC and the taxpayer (or the agent) has the right to make changes to the return. There are different time limits depending on whether it is a correction by HMRC or an amendment made by the

14 Jul 2020 13:37 | Produced by Tolley Read more

Corporation Tax

Terminal trading loss relief

Terminal trading loss reliefTerminal loss relief for trade losses in the final 12 monthsTrading losses incurred by a company in the final 12 months leading up to the discontinuance of trade may be carried back for up to three years from the period beginning immediately before that 12-month period.

14 Jul 2020 13:49 | Produced by Tolley Read more

Corporation Tax

Withholding tax

Withholding taxIntroductionUK tax must be withheld on UK payments including:•interest•royalties•rental incomeUK withholding tax may be reduced under the provisions of a double tax treaty (DTT). Prior to 1 June 2021, payments of interest and royalties made to EU resident associated companies were

14 Jul 2020 14:01 | Produced by Tolley Read more

��Ƶ