Paul Davies

This Practice Note outlines the general tax principles of trading which apply to trustees or personal representatives. It includes a discussion about what constitutes a trade, how profits are determined where trustees are carrying on a trade and how trade losses can be used.

This Practice Note considers the inheritance tax (IHT) treatment of a bereaved minor's trust (TBM or BMT). It also outlines how to calculate the IHT payable when the trust comes to an end.

This Practice Note explains how losses incurred by trustees may be used and the restrictions on their use.

This Practice Note considers the availability of BADR (BADR), formerly entrepreneurs' relief, to trustees. BADR provides for a reduced rate of capital gains tax (CGT) on certain disposals of business assets and may be claimed by trustees in certain circumstances.

This Practice Note sets out the key CGT reliefs and exemptions applicable to business assets which are available to trustees (as well as individual business owners), including business asset roll-over relief, incorporation relief, EIS and SEIS reliefs, relief on company reorganisations and relief for losses on loans to traders.

This Practice Note outlines the taxation of investment income which applies specifically to trusts. It explains how trustees are taxed on interest, on savings income, dividend income, insurance bonds and estate income accruing to trustees of a Will trust.

This Practice Note explains how and when income tax should be paid by trustees of a trust. It considers when payments on account of income tax will be required and how they can be made, as well as considering briefly how and when payments of capital gains tax (CGT) are made by trustees.

This Practice Note considers the ways in which a trust may be restructured or varied, the reasons for doing so and the potential tax implications of restructuring or varying a trust.

This Practice Note, written by Paul Davies of Clarke Willmott, explains how to identify whether a trust is a single trust or comprises more than one settlement. It explains the tax treatment of sub-funds within a trust, how and when a sub-fund election can be made as well as the conditions which must apply for the election to be possible.

This Practice Note explains the term ‘qualifying interest in possession’ (qualifying IIP or QIIP) and its importance for inheritance tax (IHT) purposes. It considers pre-22 March 2006 IIPs, immediate post-death interests (IPDIs), disabled person's interests (DPIs) and transitional serial interests (TSIs).

This Practice Note explains the term ‘relevant property’ and considers other concepts on which the charges to inheritance tax (IHT) on relevant property are based. It also briefly addresses property exempt from the relevant property regime, and what is meant by ‘related settlements’.

This Practice Note considers the expenses incurred by trustees when running a trust, known as trust management expenses (TMEs). This Practice Note includes a discussion of how TMEs are treated in various types of trusts, such as settlor-interested trusts, interest in possession trusts and discretionary trusts. A brief discussion about beneficiaries’ expenses is also included.

This Practice Note explains the requirement for trustees to submit a Trust and Estate Tax Return (form SA900) and provides some commentary on the information to be included in it.

This Practice Note considers the tax treatment of income which has arisen abroad and is payable to UK trustees. It covers the conversion into sterling, exchange rates, FOTRA securities, foreign dividend income, receipts from a non-resident company, stock dividend paid by a non-UK company, double taxation relief, income distributions from offshore funds and offshore income gains.