Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Trusts, Settlements and Estates Manual

HM Revenue & Customs
, see all updates

Trust income and gains: the charge on trustees : standard rate band - no need for returns in certain cases

From 2006-07 the standard rate band (SRB) applies to any income or deemed income that is otherwise chargeable at the trust rates or dividend trust rates. It therefore applies not only to income that can be accumulated or paid at discretion (ITA/S479) but also to certain capital receipts that are deemed to be income when received by both discretionary and non-discretionary trusts. See TSEM3018.

Trustees whose income year on year does not exceed the standard rate band and whose liability is covered in full by tax deducted at source or non-payable tax credits are not usually required to make a return every year. This will mostly affect those trustees whose income is within the £1000 limit (£500 for the year 2005-2006) and is made up of net interest and UK dividends, as they will have no additional liability.

Where such cases are identified and there is no open enquiry set the ’Last SA Return’ year to that of the most recently filed Trust & Estate Tax Return, for example if this was for 2009-10, set this as ‘10’ and send the ‘SRB/TAS dormancy’ letter to the trustees and copy to the agent where appropriate (see TSEM3015). If a return has already been selected for issue for the following year, the dormancy procedure does not apply and no further action is required.