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  • Vulnerable Persons Trust - Tax return

    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?