Trust Income

We have two minor children of one of our clients who have received income from a trust and 45% tax has been deducted. They have received form R185 from the Trustees. Both minors have no other income. How can we claim back the 45% tax paid as a refund? Do they have to complete a tax return? One of them is under 16 and does not have a National Insurance Number

Hi
Depending on the type of trust, a tax return may be required.  
Please have a look at the guidance at (Trusts and taxes) which will help to determine if a tax return is required or a repayment claim using form R40. 
You will need the infomation provided on the R185 by the trust, if you are completing a R40 or Sa107 (trusts) page for self assessment.
Thankyou.

We also have a discretionary trust that pays out to minors. We submitted 4 R40s in July 2022 and have written in March 2023 as two of those R40s still haven't had the tax refunded. Please can you advise what we should do to chase progress on these. Thank you.

Hi Sue Cottee,

To find out when you can expect the R40s you submitted to be actioned, please use the following HMRC tool:
Check when you can expect a reply from HMRC.  
If you require a progess update, the relevant phone number and address can be found here:
Contact HMRC

Thank you.

I am trying to complete a form R40 and have taxed income from two different trusts. In box 4.1 there is onlly space for one of the trust UTRs. should I simply complete a second copy of the trust income section and attach or a second R40 in its entirety showing income from the second trust?

Hi,

You can put the 2nd on beside it and just include the total from the 2 in the income.

Thank you.

Can you please assist. My Father passed away in December 2020 and money was left for myself and the other beneficiary (my brother) in a none discretionary trust fund. There is a 3rd beneficiary if we both pass away, which is a registered charity. The Trust is managed by two trustees, but, one of the trustees has recently resigned and to date, no other trustee has been appointed. I resigned from my last job in January 2023 and took early retirement and have never worked since. My brother works part time, about 8 hours per week. We have both received varied income payments from the none discretionary trust fund in December 2022, March 2023 & February 2024. I have requested on numerous occasions, copies of the R185’s, but the Trustees have not yet obliged to either myself, my brother or my solicitor. Also, we have never received accurate accounts or full details of the none discretionary trust fund and an associated separate international bond. How do I find out if I owe HMRC any tax payments ? and is it a legal requirement for the Trustees to send the beneficiaries copies of the R185’s ?? Many thanks & warm regards.

Hi,

The trust is required to provide you with form R185 to show the income received. Without this HMRC cannot advise you if any tax is owed.

Trusts and taxes

Thank you.