We have a new client who has been reporting the rental income from a property in trust onto her own tax return for the past 11 years.
It does not look as though a trust tax return has ever been submitted so I am assuming that HMRC do not even know that this trust exists.
I know that I need to look at the personal tax returns and the trust tax returns back to 2002/2003 and look at the possibility of the 10 year charge dependent upon the value of the estate at that time.
I would just like to bounce this around to you all just in case I may be missing something.
Thank you in advance
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What type of trust is it?
If it's an interest in possession trust the rental income could have been mandated directly to her as beneficiary.
Perhaps it's just a bare trust anyway. Have you seen the trust deed?