½Û×ÓÊÓƵ

Variations

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance

Variations

Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
imgtext

Overview

It is possible for the trustees and / or beneficiaries to vary a trust. This could be because the trust is no longer needed, to reduce administration costs, to extend the life of the trust, or for tax reasons. Variations can also be effected by the court.

While the term ‘variation’ refers to any change in the trusts under which property is held, it usually applies more specifically to variation with the assistance of the court. A variation by the court would be made on behalf of and for the benefit of a minor or vulnerable beneficiary.

Variations share similar features with resettlements and partitions. See the Resettlements and sub-funds and Partitioning trust funds guidance notes for further details.

Any variation that necessitates a deed should be drafted by a lawyer or other person authorised to do so under the Legal Services Act 2007. See the Reserved legal services guidance note for further details.

This guidance note is for accountants and tax advisers and provides an outline of the issues that they will need to

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
Powered by

Popular Articles

Gifts out of surplus income

Gifts out of surplus incomeA valuable exemption from inheritance tax (IHT) applies to gifts out of surplus income. This exemption applies only to lifetime gifts and is therefore a key part of lifetime planning. The exemption applies to both outright gifts and gifts into trust. Gifts which meet the

14 Jul 2020 11:48 | Produced by Tolley in association with Emma Haley at Boodle Hatfield LLP Read more Read more

Transferable tax allowance (also known as the marriage allowance)

Transferable tax allowance (also known as the marriage allowance)What is the transferable tax allowance (marriage allowance)?From 6 April 2015, an individual can elect to transfer 10% of the personal allowance (£1,260) to the spouse or civil partner where neither party is a higher rate or additional

14 Jul 2020 13:52 | Produced by Tolley Read more Read more

Double tax relief

Double tax reliefWhen income arises in a foreign country to a UK resident company and that income is taxable in that foreign country, the UK may give the company relief for the foreign tax by crediting the foreign tax against the UK tax charged on that income. This might include withholding tax on

14 Jul 2020 11:31 | Produced by Tolley Read more Read more