Professional bodies seek evidence on protected trusts and non-reporting funds
Released 08 June 2018
A working party of four professional bodies are seeking evidence to support a request to HM Treasury and HMRC to correct a legislation defect.
New rules for foreign domiciliaries and non-UK resident trusts were introduced from April 2017, by Finance (No 2) Act 2017 and Finance Act 2018. The rules contain anti-avoidance provisions but also protections to help settlors of offshore trusts affected by the changes. However, there is a technical defect in the legislation, relating to offshore income gains, which could cause serious problems. A working party of four professional bodies – the Institute of Chartered Accountants in England and Wales, the Chartered Institute of Taxation, the Society of Trust and Estate Practitioners and the Law Society of England and Wales – has been looking at the domicile and trust changes and liaising with HMRC. However, information on the scale of the problem is needed to provide HM Treasury and HMRC with evidence to support a persuasive argument to Ministers for the problem to be fixed and the necessary resources committed to doing so. The professional bodies have prepared a short survey and advisers are also encouraged to contact ICAEW Tax Faculty with any comments about the impact on their client base.
For more information, see Protected trusts and non-reporting funds – help us gather evidence.