DT applications and claims: Non-resident beneficiaries of UK trusts
Dealing with claims by non-resident beneficiaries of UK discretionary trusts under ESC/B18
How to identify a repayment claim
The claim will usually be supported by a tax certificate on form R185, or an equivalent certificate prepared by the payer, showing tax deducted from the payment at 40% (34% for periods before 6 April 2004).
If the tax certificate is missing, the schedule will show that tax on the income is at 40% (34% for periods before 6 April 2004).
Exceptionally, you may receive a claim on a payment from a UK discretionary trust where tax is not shown as having been paid at the Rate Applicable to Trusts (see INTM367950).
You will need to request the trust file (the UTR for this should be quoted on the tax certificate) together with the trustees’ tax return for the year of the distribution and all earlier years in date for time limit purposes during the year of distribution (you will need these if a ‘spreadback’ calculation is necessary).
You will need to advise the claimant or their agent that you have requested information from the trust’s tax office to enable you to deal with the claim.