Introduction to trusts: request for advice or information: request for advice - is the trust settlor-interested?
If the agent or lay trustee has asked if the trust is settlor-interested, you may write out along the lines below.
‘You asked whether the trust is settlor-interested. This is a matter for the trustees to decide, but it does not affect whether the trustees should return, as part of the Self-Assessment process, the income they receive. The Trust and Estate Tax Return Guide (SA950) contains guidance on completing the Trust and Estate Tax Return (SA900). 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.
Further information about settlor-interested trusts can be found on the HMRC website.’ External customers can find this guidance at http://www.hmrc.gov.uk/trusts/types/settlor-interested.htm. 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).