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Beneficiaries making income tax repayment claims on trust distributions.
We are an independent trust management company that primarily manages discretionary trusts for people with learning disabilities. From time to time discretionary distributions are made to beneficiaries who do not have the mental capacity to manage their own financial affairs.
Until recently income tax repayment forms R40 were submitted to HMRC to claim on behalf of beneficiaries the tax treated as deducted at the trust rate on discretionary distributions. The repayment claim forms were signed by the appointee for Department for Work and Pensions purposes.
HMRC has rejected recent R40 forms signed by the relevant appointees and appears now to require them to be signed by a deputy authorised by the Court of Protection.
The beneficiaries do not have any assets in their own names and therefore it is not cost effective for deputies to be appointed. Advice is sought from readers on how to continue making repayment...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
