I have a trust client that will be wound up, with all assets appointed out partly in to the 15/16 tax year. As the tax return wont be issued until almost a year after the appointment, all parties would like to make the final return early, and ideally get some form of clearance from HMRC that there aren't any issues with the figures.
After a brief search over HMRC's website (yuk) and the manuals, I haven't been able to find any guidance on a process for this.
Has anyone had a similar experience to this, and if so, is there a process for getting clearance ?
With thanks.
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Yes TSEM2140
My procedure has always been to close any income bearing accounts before the end of the tax year. The final return is then sent with a letter explaining the Trust is to be wound up requesting early clearance and agreement to all liabilities to enable final distributions to be made.
However, I also recommend Trustees retain an amount of capital agreed with beneficiaries to be held on bare trust in a client account, until the normal enquiry window is closed as a hedge against accounting fees should an enquiry be opened
For estates
one can get early clearance (ie before the 12 months after submission of the tax return. In my younger days one could also get this for trusts. That is wrte a letter to Tax Office stating trust has been wound up and the final tax return submitted. Asking for confirmation that no enquiry will be opened into the final Tax Return.
TSEM2140
I saw this when I was looking for something else, probably a bit late now but TSEM2140 confirms HMRC will issue Trust TRs early on request.