How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask bigduckontax Your Own Question

bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3377
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

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.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3377
Experience: FCCA FCMA CGMA ACIS
bigduckontax and 2 other Tax Specialists are ready to help you
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.
(Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
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.

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions