An educational trust will normally be a discretionary capital settlement to which the provisions of Section 686 ICTA 1988 apply.
Follow the guidance at
TSEM5175 as regards the
action to take on learning of a new educational trust.
The reply will advise the trust office whether or not the trust counts as an educational trust. If it does the trust office will be sent an additional copy of the ruling on the tax treatment of the trust. This additional copy should be forwarded to the office dealing with the PAYE scheme of the employer named first in the trust deed.
Copy rulings received from the trust office should be filed in the employer's file (133M). At the same time the employer's name and PAYE reference should be entered in an establishment file (133K) headed 'Educational and Scholarship Schemes'.
If you find scholarship awards being made by a foreign trust obtain the title documents and submit them to the Centre for Non-residents.