TSEM1505 - Introduction to trusts: new trusts: new nominal settlement

If the total amount settled (cash or assets) is worth less than £1000 the case is a nominal settlement. (You should find information about settled assets on the 41G(Trust)).

Check if you have a record for the trust. Set up a record if you do not have one. The instructions are in the SA Manual under ‘records/ set up taxpayer record/ action guide/ set up trust record’.

Do not ask for details of additions or loans. Consider this after you have a completed return for the first year.

Ensure that a return is issued for the first year.

Set the compliance signal for the year.

Trust has no likelihood of income or gains

If there is no likelihood of income or gains, trustees need not notify the trust office of the existence of the trust. If you already have records for the trust, the trustees can ask you to

• close the record for the trust or
• not to issue annual SA returns.

The instructions are at TSEM1405. If you agree the request, ignore the above procedure for nominal settlements.