DT applications and claims: Trusts: Non-resident beneficiaries of UK trusts
Distributions to an absolute beneficiary or to a life tenant – claim supported bytax certificates in the name of trustees
Original tax certificates in name of trustees
Instead of an R185 you may receive a tax certificate in one of the following formats
- Composite tax certificate issued by a bank, trustee company or similar body, in the name of the beneficiary
- Composite tax certificate issued by a bank or similar body in the name of trustees
- Individual certificates in name of trustees
Composite tax certificates
The beneficiary may have a composite tax certificate, produced by a bank, trustee company or similar financial institution. The certificate may be in the name of the beneficiary and identify the name of the trust through which the income arises. Or the certificate may be in the name of the trustees, again showing the name of the trust.
You should accept these certificates without enquiry, subject to the general guidance for dealing with tax certificates. A full list of the underlying securities and, usually, subtotals for each type of income will be shown.
There is no need to question this as a matter of course. It is likely that in these cases the trust is a ‘bare trust’ (TSEM1030).
Individual certificates in the names of trustees
You may receive claims supported by individual certificates in the names of trustees. If this happens it may not be immediately obvious that the claim is for trust income. If the claimant has provided tax certificates registered in someone else’s name, without explaining the registration of the certificates, this may indicate that a bare trustee holds the investments for the claimant.
- You will need to check that the claimant has title to the income. If it is clear from the previous papers that title has already been established you can continue with the claim.
- If the claimant’s title to the income has not been established or is unclear, you will need to confirm the claimant’s title. Remember that you will have to open an SA enquiry to ask for the information you need. See INTM331200 for guidance on how to open an enquiry.
What to ask for
Ask the claimant (or their agent if appropriate) to provide the details on form 4467(beneficiary)/FD.