TSEM3015 - Trust income and gains: the charge on trustees : standard rate band - standard letter to be issued when the Last SA Return year is set and the dormancy procedures are appropriate.
Where the ‘Last SA Return’ year has been set in accordance with TSEM3014, and the dormancy procedure is appropriate, send a letter to the trustees, copied to the agent as appropriate, using the text below. If the trustees or agent subsequently ask about the tax pool position for discretionary settlements, send them the letter in TSEM3016.
[Name of Trust]
Thank you for sending us your xxxx-xx Trust & Estate Tax Return, which we have now processed.
As the income declared on your xxxx-xx tax return does not exceed the standard rate band relief of £1000 and/or all the liability due is covered by tax deducted at source (on the interest) and tax credits (on the dividends), HMRC can advise that you will no longer need to complete and submit a trust return, unless any of the points listed overleaf apply.
It is important that you tell us within six months of the end of the tax year in question if any of those points listed do apply. If you have any doubts please contact us on 0845 604 6455.
Assets in the trust
We understand that assets remain settled in this trust and so you may need to file a Trust & Estate Tax Return at a later date. Please bear in mind that by law you continue to have the same obligation to advise us of any chargeability to income tax or capital gains tax which may arise in future.
Please keep this letter somewhere safe
It shows all of our contact details, along with your self-assessment reference number. You will need these if you need to contact us in the future.
Further information
If you have told us that you have an agent acting for you, we will send a copy of this letter to them. There is no need for you or your agent, if you have one, to contact us to acknowledge receipt of this letter. Please do so only if we have misunderstood your likely ongoing tax liability. The number to contact is 0845 604 6455.
You can find more information about trusts if you go to the HMRC Website
Finally, if we receive a Trust & Estate Tax Return from you that falls outside of the criteria set out below we will not be able to acknowledge receipt of that tax return nor enter into communication with you about it. and then insert the following after the salutation
From now on you will only need to complete and submit a tax return if:
- We send you a notice telling you to make a tax return for a given year, or if
- You have not received a notice to make a tax return for a given tax year but one or more of the following applies in that year.
- Your taxable income exceeds the standard rate band (£1000 for 2007-08 and later years), or the tax liability on the income is not fully covered by tax deducted at source or by a non-payable tax credit, so you have further tax to pay, or
- You make a discretionary payment to a beneficiary but the tax pool is insufficient to cover the charge to tax. If you need more information about how the standard rate band affects the tax pool, or would like further guidance on tax pool, please contact this office and ask for the SRB tax pool annex letter,
- You have income, which needs to be included in a supplementary page to the tax return - for example income from property, or
- You have a capital gain or loss that should be included in a tax return, or
- You want to claim a particular tax relief or exemption, or
- The trust comes to an end.
Again we would like to remind you that it is important that you tell us within six months of the end of the tax year in question if any of the events listed in point 2 above occur.
It is your responsibility to keep us informed. We may seek interest and penalties if you leave it too late or if we find a liability to tax in your trust that you have not told us about.
