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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4186
Experience:  FCCA FCMA CGMA ACIS
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My client received £5000 from her trust (she is not a trustee).

Customer Question

Hi. My client received £5000 from her trust (she is not a trustee). It would appear that the trustees didn't not produce from R185 or pay any tax. It's unclear whether the trust has a UTR either. How do I treat the £5000 receipt on her tax return?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. The Form R185 is used to indicate what tax has been deducted from a payment. Where no tax is deducted it is not required. It is, of course, possible that the 5K is a capital distribution from the Trust and thus not taxable at all in the hands of the recipient. Thus before you enter it in her tax return you must determine the exact nature of the distribution as it may not need to be declared at all. If it is erroneously declared it will land her with an unnecessary tax bill of at least 1K. Some more research is needed here before you can finalise her return. I am so sorry to have to rain on your parade.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.
Customer: replied 1 year ago.
Hi, there seems to be even more confusion. My client's "bare trust" received £6482 net dividends (tax £720) plus a quarter of her relative's property £444,000. There was no tax paid over upon the sale of this property. Her trust then purchased a property for £400,000. The trustee seems to think that she is liable for CGT on this even though she has only actually received £5,000 into her own bank account. She also tells me the trustees (her uncles) are not allowing her to take any more money out of this trust (apart from the £5k already rec'd), even though she is 26. Please help. Her uncles are being very difficult!!
Customer: replied 1 year ago.
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Customer: replied 1 year ago.
My number is ***** 827900
Customer: replied 1 year ago.
Hi, there seems to be even more confusion. My client's "bare trust" received £6482 net dividends (tax £720) plus a quarter of her relative's property £444,000. There was no tax paid over upon the sale of this property. Her trust then purchased a property for £400,000. The trustee seems to think that she is liable for CGT on this even though she has only actually received £5,000 into her own bank account. She also tells me the trustees (her uncles) are not allowing her to take any more money out of this trust (apart from the £5k already rec'd), even though she is 26. Please help. Her uncles are being very difficult!!
Expert:  bigduckontax replied 1 year ago.
I am responding to your follow up questions from a time zone 7 hours ahead of GMT so phoning would be a highly expensive exercise. This is an entirely different subject and should be posed as a separate question on Just Answer.