The government’s proposals to remove more low-income trusts and estates from income tax is a welcome simplification says the Association of Taxation Technicians in its response to a recent HMRC consultation.
Since 2016 an informal concession has removed the burden of tax reporting from trusts or estates which have small amounts of interest income and a resulting tax liability of less than £100. This has been a useful concession as it helps to reduce the administrative burdens for the executors beneficiaries and trustees of eligible trusts and estates. The government intends to formalise this concession and widen it to allow estates or trusts with income of up to £500 from any source - which is equivalent to an income tax liability of £100 or less - to benefit from this simplification.
Senga Prior chair of the ATT technical steering group said: ‘The primary...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.