HMRC extends deadline for taxation of trust consultation
HMRC has extended the deadline for responses to its consultation on the taxation of trusts by a month, with feedback now welcomed up to 28 February
18 Jan 2019
The consultation, which opened in early November, was originally scheduled to last for 12 weeks.
The consultation, which is the first to examine trust taxation overall, sets out the government’s thinking so far on making trust taxation fairer, simpler and more transparent.
It also considers whether reform is needed to encourage uptake but discourage the abuse of non-resident trusts for tax avoidance purposes.
The government has not made any specific proposals for reform of the taxation of trusts but will consider the views and evidence presented in response to the consultation and will then weigh up the options for reforms accordingly.
Amongst the options discussed in the consultation document is the possibility of targeted reform to the inheritance tax regime as it applies to trusts, and the simplification of vulnerable beneficiary trusts, including their interaction with ‘age 18 to 25’ trusts.
The taxation of trusts: a review is here.
Report by Pat Sweet