.png)
.png)
We have recently taken a new case comprising a self settled trust and the settlor's personal tax. The trust holds an investment in an offshore unit trust from which it receives untaxed dividends in the region of £25,000 and there is a small amount of UK bank interest. The previous advisers have included the dividend in the foreign pages of the self-assessment trust return and paid 10% tax.
We have recently taken a new case comprising a self settled trust and the settlor's personal tax. The trust holds an investment in an offshore unit trust from which it receives untaxed dividends in the region of £25 000 and there is a small amount of UK bank interest. The previous advisers have included the dividend in the foreign pages of the self-assessment trust return and paid 10% tax.
On the settlor's self-assessment tax return the dividend has been shown as trust income with non-repayable 10% tax credit. As the trust income is the settlor's only income she is getting a repayment of the tax paid against her bank interest but is wasting £4 000 of personal allowances.
It strikes me that without the existence of the trust the foreign dividends would be included in the settlor's personal tax return on the foreign pages and...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
