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HMRC internal manual

Trusts, Settlements and Estates Manual

Trust income and gains: enquiry into income from a trust - how to check payments from a discretionary trust

If you have doubts about the validity of the form R185 (Trust Income) or the amount shown, you can ask the relevant Trusts & Estates Office (TSEM1415) if they can verify the amount paid to the beneficiary from their trust return. Form R185 (Trust Income) shows the trustees’ name and the tax reference of the trust.

Suggested memo:

‘I have an open enquiry into my taxpayer’s [return/repayment claim]. My beneficiary [name] states s/he has received net income from your trust on [date] as follows:

net amount £

Can you please confirm this from your trust return (Question 14) for [year]?’

If the trust return identifies your beneficiary, and there is a disparity between the amounts shown, it is for your office to pursue.

If the trust return shows no payment to beneficiaries, it may be because

  • the trust omitted the figures from its return, or
  • the beneficiary has falsified the form.

Both offices should decide how to pursue the compliance issue in that specific case.