SAM106040 – Records:
bankruptcy: bankruptcy: trustee’s record
A trustee in bankruptcy (or sequestration in Scotland) is
assessable on
- Interest arising on funds held by the trustee
- Other income arising from the debtor’s
estate, such as profits arising from the debtor’s business
where it is continued by the trustee
- Capital Gains arising from the trustee’s
disposal of the debtor’s assets
The trustee is liable at the lower rate of tax on Bank and
Building Society Interest plus any other income from savings and
distributions within S1A ICTA 1988 he / she receives. All other
income is taxable at the basic rate only. Tax on chargeable gains
accruing on disposals of the property is computed by reference to
the bankrupt's or debtor's circumstances.
An SA record type trust is opened in the debtor’s name
(with the trustee being entered as a capacity) and, except for the
final year, a trust return is required for years in which the
trustee is in receipt of untaxed income or Capital Gains. When the
trustee notifies liability
- Use function SET UP TRUST to create an SA record
in the name of the person against whom the bankruptcy order or
award of sequestration was made. On using the function
- Select ‘Non-discretionary’ as
the trust type
And, finally,
- Select the [Add Trustee] button to access
the function SET UP CAPACITY DETAILS
- Use function SET UP CAPACITY DETAILS to enter
details of the trustee in the capacity name and address fields. On
using the function select from the drop down menu on the first part
of the Capacity Role field
Or, if the appropriate capacity is
not shown in the drop down menu
- ’Other’ and then enter the
capacity in the second part of the Capacity Role field abbreviating
it, if necessary. For example, if there is a trustee in
sequestration acting, enter ‘Permanent Trustee’
