Offshore but unsure?

Key points * Dealing with income tax due on income from offshore trusts. * When transferring income tax may due unless it is done for bona fide reasons. * Capital gains tax can impact on both settlors and beneficiaries. * It is advisable to complete the HMRC form 50FS.

THE TAXATION OF offshore trusts seems complicated and daunting to those who do not deal with them regularly and it has to be said still somewhat challenging to those who do. This article will give an overview of the taxation of settlors and beneficiaries of offshore trusts.
Non-resident trusts are subject to many special provisions aimed at eliminating or reducing the tax advantages that they have offered and HMRC have dealt with this by introducing a number of different anti-avoidance provisions aimed at settlors and beneficiaries.

Income tax provisions

As a general principle an individual...