Discretionary Trust tax paid

My husband and I cashed in a discretionary trust last April set up by Mother 11years ago. and split between 2 children .( trust value was only 25% of nil rate band) Both trustees and beneficiaries are basic rate tax payers , do I need to do anything? The finance advisor connected to Trust said we shouldn’t have to pay anything and the certificate of chargeable event is relevant to higher rate tax payer. ( this shows tax paid already at 20%) Just checking this is correct?? Thanks

Hi,

As the trust is now wound up, a trust and estate tax return covering the period to cessation will be required, usually do this after the end of the tax year in which the cessation occurred.  

The beneficiaries, would still need to declare their trust income on a Self Assessment Tax Return for the tax year in which the trust was wound up. The trustess would still need to provide the beneficiaries with R185 (trust income) to allow then to report the income.  

For further information, please contact the trust helpline Number: 0300 123 1072
Overseas: +44 300 123 1072
9.00am to 5.00pm Monday to Friday Closed bank holidays (including Scottish bank holidays)  

Alternatively, write to HM Revenue & Customs Trusts BX9 1EL.

Thank you.

I need to apply for a tax credit for income received from a discretionary trust in past tax years. Looking at the R40 online form can you confirm that I will need to reenter all the details from my self assessment tax return to claim the tax credit?

Hi,

If you already complete a tax return, the R40 is not applicable and you will need to submit an amendment to your return.

The trust page is at:

Self Assessment: Trusts etc (SA107)

Thank you.