Trustees reporting requirements for CGT

Dear/Ms, I have just spoken with one of your colleagues via the trusts helpline but I'm still none the wiser! I am a trustee about to register a trust for the TRS. The trust has 2 residential property gains to report at dates which would require a 60-day CGT report. PPR is in part due to the trustees. The reports are late but that's not the issue causing the problem. The TRS requires me to declare the trust as either taxable or non-taxable. If it's taxable the Trust will receive a UTR and be registered for SA900 Trust and Estates Tax Return i.e. self-assessment. However, this will mean filing a CGT report for each disposal AND including it again on a tax return. The trust has no other income or gains to report so, why cannot it be considered non-taxable so only a URN is generated and the reporting can be done solely via the 60-day reports. The tax position will be the same. It would seem unfair to have to report twice which is not the case for individuals if they have no other reason to self-assess. PPR can be claimed on the 60 day report so why do I also have to pay for an accountant to submit an SA900/SA905 too if I've already filed and paid via the 60 day route? You colleagues said I needed to but couldn't really explain why and wouldn't comment on the interaction with the CGT reports. Please clarify. Many thanks, JEJD

Hi,

Once a trust becomes liable to tax, the trust must be registered with HMRC and a tax return submitted each year.  

We cannot advise on the type of trust or whether it has become liable to tax on this forum. You can see guidance on trusts and taxes here:

Trusts and taxes

Trustees - tax responsibilities 

You do not have employ the services of an accountant to submit a SA900 or SA905 for the trust. The trustees can submit the tax return themselves. Where there are 2 or more trustees, they nominate a 'principle acting trustee', who will submit tax returns either on paper or online, on behalf of the trust.

Thank you.

Thank you for your reply. With respect, the requirement to notify a liability to capital gains tax for any person for self-assessment purposes (including a Trustee) is enshrined in TMA 1970 para 7 part 1. However, FA 2019 Schedule 2 part 2 para 18 clearly states: "18 (1) A person is not required to give a notice under section 7 of TMA 1970 merely by reference to a chargeable gain accruing on a disposal if— (a)the person delivers a return under this Schedule in respect of the disposal, and (b)the return is delivered before the end of the notification period within the meaning of that section." So the legislation itself seems unequivocal and I can dispense with the need to self-assess if I report the gains via a 60-day report but yet you are saying I must ignore it. Please confirm. Thanks. 

Name removed admin .

Hi jejd68,
The Self Assessent legal framework advises "the information required in Self Assessment tax returns is such information 'as may reasonably be required' to establish the amounts in which a person is chargeable to income tax and Capital Gains Tax.
It includes information needed by HMRC to check that the Self Assessment is correct".
SALF206 - Self Assessment Tax Returns: information to be included in the Tax Return.  
This allows taxpayers to have only one annual tax bill based on the figures in their tax return.
Thank you.