Introduction to trusts: request for advice or information: request for advice - is the trust taxable at the special trust rates?
If the agent or lay trustee has asked if the trust is taxable at the special trust rates, you may write out along these lines:
‘You asked whether the trust income would be liable to tax at the special trust rates. This is a matter for the trustees to decide as part of the Self-Assessment process. The Trust and Estate Tax Return Guide (SA950) contains guidance on this matter. You can download a copy of the Trust and Estate Tax Return Guide from the HMRC website or by ringing the Orderline on 0845 9000 404.’
If the request for advice concerns
- a large number of similar trusts, or
- a potentially sensitive trust (for example a compensation or appeal fund type of trust)
refer the status issue to HMRC Trusts & Estates Technical Edinburgh (TSEM1562).