Trust taxation and accounts

As a separate legal entity, a trust is required to the registered with the Trust Registration Service if it has a tax liability arising.

With effect from 2022 trusts will be required to register even if they do not have a tax liability.

That tax liability includes income tax, capital gains tax, inheritance tax and stamp duty land tax.

Depending on the terms of the Trust Deed, trustees’ powers can include the powers to invest hold land and in certain circumstances carry on a trade.

It is good practice to prepare annual accounts to show the income and assets of the trust including where applicable separate beneficiary funds and distribution accounts. 

What can we do to help?

• Assist with the registration of the trust with the trust registration service.
• Advise on the record keeping requirements of the trust.
• Prepare annual accounts, and if required management accounts.
• Advise on the tax compliance requirements of the trust.
• Prepare annual trust self-assessment returns SA900.
• Keep the trustees up to date in changes in taxation law and other developments.
• Attend annual trustee meetings to explain accounts and tax position to the trustees.
• Calculate income/profits available to distribute to beneficiaries and explain tax implications of distributions with respect to the trust and the beneficiaries.
• Prepare R185 (Trust Income) tax deduction certificates for the trustees to provide to the beneficiaries.