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Posted Tue, 02 Jan 2024 18:44:21 GMT by pradlukka
I have a question regarding how interest and or asset values are reported to HMRC for investments held in a vulnerable persons trust. Investments (one in bonds and one in a balanced portfolio fund) were made in May 2022 using a Financial Advisor in the name of the "vulnerable persons trust". The Trust is of the discretionary type, it's properly established by a deed and is registered with HMRC. The value of the bonds and investments had gone up within the trust in the year to 31st March 2023. Whilst trusts are responsible for paying income tax on any interest, in this case, the sole beneficiary is a vulnerable person, and HMRC has allowed that the Trust is not liable to income tax on the interest. Do the trustees still have to complete and submit a Self-Assessment tax return for the vulnerable persons trust? If so, as the deadline for paper-based submission has passed, does Self-Assessment software need to be purchased to help populate the Self-Assessment tax return? Also please can you advise the online forms that need to be completed?
Posted Wed, 10 Jan 2024 11:47:57 GMT by HMRC Admin 20
Hi pradlukka,
The trust income is normally notified to the beneficiary on form R185 and this can be reported to HMRC on form R40 or a tax return if the income received is over £10k.
If so, you need to use commercial software to submit - Self Assessment commercial software suppliers.
Thank you.

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