HMRC internal manual

Trusts, Settlements and Estates Manual

TSEM8712 - Trust management expenses: allowable expenses: specific items: accountancy: preparation of trust accounts

The nature of trust accounts is such that it is reasonable to accept that the cost of accounting for the trust’s income confers a benefit exclusively on the income beneficiaries, and as such is properly chargeable to income.

Time spent calculating the annual trust income, but not time on trust gains, and time spent on the collection of investment income, could all be said to confer benefit exclusively on the income beneficiaries.