Bare Trust for Non Res remainder beneficiaries

I am dealing with a very old Life Interest trust that came to an end on the death of the life tenant on 19th July 2016. The only asset held in the trust was a UK rental property consisting of a shop with residential accommodation above. As the trust has come to an end the remaindermen are now the beneficial owners of the property and rental income was received up until 9th August 2022 when the property was sold. There have been multiple problems with this trust and it wasn't until the property was sold in August 2022 that any rental income was paid to us and until that point we held no funds. As it is now a Bare Trust the remaindermen are responsible for declaring the untaxed rental income however there are a total of 11 remaindermen 4 of which are non UK Resident. Can the rental income for the Non UK resident beneficiaries be paid to them without deduction of income tax?

Hi ,
 

Thank you for your question. Trustees can apply under The Non-Residents Landlord Scheme to have rent paid gross, please see : What the Non-resident Landlords Scheme is and also please visit : Non-resident landlords: company or trustee application to have UK rental income without deduction of UK tax which contains an online application for the Non-Resident Landlord Scheme as well as a link to a postal application .  Thank you .

Thank you for your response but in this case the trust has come to an end and we as the solicitors acting have collected the rental income on behalf of the remaindermen. Please would you confirm who should apply under the NRLS to have rent paid gross, should it be (name of Solicitors removed) Solicitors or the original trustees? If Solicitors apply for gross income in this particular case will it be valid for other cases we are dealing with or do we need to do a separate application for each client?

Hi

Thank you for your question. To find out who should apply and what can be accepted by the NRLS please contact them, details can be found at Non-UK resident landlords 

Thank you