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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4203
Experience:  FCCA FCMA CGMA ACIS
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Family trust fund does family member in a trust fund property

Customer Question

Family trust fund does family member in a trust fund property pay any tax
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
, I'm Keith and happy to help you with your question.
This is slightly more complicated than it appears. Could you please advise what type of trust is involved here please? I am aware that under Scots Law a very simple form of trust can be created which you can't do in England and Wales; indeed my ex and I set one up daughter.
Customer: replied 2 years ago.
Admistered
Expert:  bigduckontax replied 2 years ago.
I am sorry I am unable to identify what type of fund do you refer. is its a discretionary trust ?
I do need a tad more detail.
Customer: replied 2 years ago.
It is a bare trust
Expert:  bigduckontax replied 2 years ago.
Here is the advice from Gov UK web site on the subject:
'Bare trusts
If you’re the beneficiary of a bare trust you’re responsible tax on income from it.
You need to tell HMRC about the income on a Self Assessment tax return.'
So there you are, any distribution from the trust is taxable in your hands as income and must be declared on your annual self assessment tax return. Some Trustees may operate PAYE on your behalf, but not always,
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you support