Trust is about 15 years' old now. Tenth anniversary IHT charge was nil.
Trustees paid out £30,000 capital to beneficiary 2019/20. IHT on exit is therefore nil.
The £30,000 is well within the 80% of £325,000 NRB so does not need to be reported for IHT purposes.
But what about ordinary Trust SA return Page TC 5 box 5.32 (person becoming absolutely entitled to any part of the (trust) property during the year). I appreciate this box is to disclose to HMRC details of the transferee and any capital losses as assets are passed to beneficiaries, but cannot make up my mind if box 5.32 also catches capital cash leaving the trust (obviously with no gain/no loss on cash). There are no CGT transactions for the year.
On the basis of Page 3, Question 5 of the SA900, there is no requirement to disclose. If this is correct it means that capital will have passed out without any knowledge of HMRC, and Question 5 does seem to override the CGT pages box 5.32 disclosure.
But HMRC will, of course, find out about it when the 20th anniversary IHT charge is disclosed to them.
I am torn between the desire not to make an unnecessary disclosure because of Question 5 and the need to make a full disclosure for the client's sake.
This question has perplexed me a number of times in the past.