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HMRC internal manual

Trusts, Settlements and Estates Manual

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HM Revenue & Customs
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Trust income and gains: vulnerable beneficiaries: non resident vulnerable person - vulnerable person who is physically disabled

The definition in TSEM3421 of a physically disabled person is a person in receipt of either attendance allowance or a disability living allowance by virtue of entitlement to the care component at the highest or middle rate. There is a residency requirement for entitlement to these allowances and so a non-resident person will not be able to receive them.

However a non-resident beneficiary may still be treated as a vulnerable person as long as they can demonstrate to the satisfaction of the HMRC officer dealing with the tax affairs of the settlement that they would have been entitled to receive either allowance had the necessary residence requirements been met. In such circumstances the non-resident beneficiary is not making an actual application for the allowances themselves and so DWP will not be involved.

It is up to the trustees and the vulnerable person to establish and provide the details that are required, as the vulnerable person would have to do if they were making an actual claim to either of the allowances. They must also supply the supporting evidence. The details and supporting evidence must be provided at the time the election is made (TSEM3455). If they are not the election will not be valid.

Further details of the attendance and disability living allowances themselves can be found on the website for the Department for Work and Pensions. External customers can find the guidance at . This also provides details of the information that would be needed to make claims for them. Anyone enquiring about the allowances or the qualifying conditions should be referred to the DWP website.