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Trust Return CGT/IHT Query

Will Trust Question

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Just doing a Trust Return. It is a Will Trust. Can I just clarify that a Will Trust is not a Bare Trust. (Having brain fade sorry!)

There is CGT on the disposal of two assets from the trust (bonds) and I just need to be certain that this goes into the Trust return and not the individuals return.

Additional info: 

Bonds are (were)  held in the name of the trust,  Disposal was October 2019.

There was also a Property (House) sold on 1st May 2020 but this will be on 2021 return which will then bring the trust to an end.

Solicitor specifically pointed out to me that it was a will trust and that the beneficiaries were not the deceased's children. They have now attained 21 year old which is why the trust is being closed (if thats the right word).

Also, solicitor believes that the properties will fall into the relevant property regime, however I think this may not be the case: all assets are under the £325k allowance and the deceased died in 2007. Am I correct here?

Any help would be appreciated - I have only done a small handful of Trust Returns in my career and I guess I'm just a little nervous of a PII claim.


Many Thanks

Replies (4)

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By Tax Dragon
30th Jun 2020 14:07

Why did the trustees approach you, if you don't deal with trusts?

The solicitor probably has a better grip on the position than you do. I don't mean that harshly - it's a specialist area and there's no reason at all you should know what you are doing.

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Replying to Tax Dragon:
By marky74
30th Jun 2020 14:21

I do trust returns occasionally, just haven't done one for a while (about 3 yr) and that was a straightforward one. Client was recommended by another client and my fees were significantly lower than others. I filed their return last year, the beneficiaries turned 21 after that which has caused the chargeable events.

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Hallerud at Easter
30th Jun 2020 15:00

Handy that all beneficiaries hit 21 at the same time (though far too young, we had our estates in trust for our kids until 25 and I thought that was too young- they are now both over 25 and I still carry the odd doubt that one will party the lot away and the other buy very expensive vinyl and even more guitars)

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Replying to DJKL:
By Tax Dragon
30th Jun 2020 15:23

DJKL wrote:

...and the other buy very expensive vinyl and even more guitars)

Is that why you are stocking up in advance?

@marky, sorry if the replies seem unhelpful. It's just that... well, respondents are forever suggesting metaphors (e.g. they wouldn't fill their own teeth) to show that accounting and tax take a bit of knowledge and skill. Outsider OPs are discouraged from DIYing. Similarly, just as dentistry and medicine have specialisms, so too do tax and accounts. I wouldn't want my GP doing my heart bypass (and conversely, to be fair, I wouldn't go to my heart surgeon for advice on skin problems).

Winging it with a bit of help from Aweb and t'internet is worse IMHO than DIYing, because it's someone else's money and tax obligations you are dealing with. And again, I am not being harsh. (Or if I am, I am also being fair.)

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