Trust modernisation

摘要

Revenue & Customs has published further information on the taxation of trustees'income and gains as part of the modernisation process.These contain a large number of changes, many of which are expected to take effect from 6 April 2006 so may require early action. Below are a few of the main points. Probably the change most relevant for any early decisions is the extension of the capital gains tax (CGT) definition of a settlor-interested UK resident trust (s77, TCGA 1992). This means that regardless of when a trust was created, for disposals after 5 April 2006 it will be regarded as settlor-interested, and with gains therefore taxable on the settlor, not only if the settlor and/or their spouse or civil partner can benefit, but also if any child of the settlor can benefit while under 18 (unless the child is married or has a civil partner.'Child' includes a stepchild.)