HMRC have published a response to their 2018 consultation ‘The Taxation of Trusts: a review’ which considered if the system for taxing trusts meets the principles of transparency, fairness, neutrality, and simplicity. The conclusion is that no comprehensive reform is currently required.

In the consultation the government did not suggest any specific reforms and instead sought views and evidence on various aspects of trust taxation. The respondents expressed the views that:

Since the responses received did not indicate any need or desire for extensive changes to the taxation of trusts, the government proposes to keep the matter under review and only consider reform to specific areas on a case by case basis.

Useful guides on this topic

UK Trusts
This guide deals with the taxation of UK trusts. See our separate guide to Non-resident trusts.

Non-resident trusts
When is a trust non-resident?  What are the UK tax implications of a non-resident trust?  What are the UK tax implications for any beneficiaries?  What are the UK administrative requirements for a non-resident trust?

Trusts & Tax planning
What is a trust? How can trusts be used in tax planning? What the advantages and what are the pitfalls?

External links

‘The taxation of trusts: a review’: Summary of responses 


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