HM Revenue & Customs is currently analysing the feedback to its review into the ways in which trusts are taxed.
The review centred on some key principles the government believes should underpin trust taxation: fairness, neutrality, simplicity and transparency.
Here, Technical Connection joint managing director Tony Wickenden outlines the scope of the consultation and the aspects financial planners should be aware of.
Tony says it's encouraging to see the government doesn't have a problem with trusts in principle, but adds there are areas that are deemed to warrant further investigation.
These include the provisions around offshore trusts, the complexity of the rules around vulnerable beneficiary trusts, and generally gaining clarity on the purpose of trusts that are set up and who the beneficiaries are.
He also signals a potential administration headache set to come in under the Fifth Anti-Money Laundering directive relating to recording and publishing beneficiary details.
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