Inland Revenue is taking more interest in trust structures following the introduction of the 39% top personal tax rate. The enactment of the new trust legislation and the domestic trust reporting rules is also resulting in greater transparency of trusts and accountability of trustees for their actions.
As a consequence, advisers have been reviewing their clients’ trust structures to ensure they are still “fit for purpose”. This review will often result in distributions being made, debts being forgiven, trust property being transferred to other structures, and trusts being varied, resettled or wound up.
These changes will often give rise to tax consequences. It is critical that advisers ensure that their clients are aware of these tax implications and take steps to mitigate them.
Accountants of all levels, tax lawyers, trust lawyers and others who act as trustees of clients’ trusts.
Stephen Tomlinson, Principal, Tomlinson Law.
1.5 CPD Hours