Further reforms in line for the taxation of trusts?

The government has launched its consultation into making the taxation of trusts simpler fairer and more transparent. It follows an announcement in last year’s autumn Budget to streamline the process.

The document contains no specific proposals for reform but sets out nine broad questions on which views are invited. These are based on HMRC’s examination of:

• the use of trusts in the UK;
• the principle of transparency in relation to non-resident trusts and whether further measures – in addition to the common reporting standard and the trusts registration service – are required to tackle avoidance and evasion;
• the principle of fairness in ensuring that trusts offer neither a tax advantage nor disadvantage interaction with inheritance tax and aspects of income tax and capital gains tax treatment; and
• the principle of simplicity ...