Taxation of Trusts

Part 1

At the end of Part 1 of the taxation of trusts course, participants will have an excellent working knowledge of:

• The different types of trust, trust taxation, including private trust taxation, and the reasons for creating them
• Technical terminology
• Powers and duties of trustees, including
  • Appointment of agents by trustees
  • Trustees’ investment powers
• The CGT position when assets enter or leave a trust
• The Inheritance Tax position when assets enter or leave a trust
• The Income Tax position of trustees
• The Income Tax position of beneficiaries receiving income

Part 2

At the end of Part 2 of the taxation of trusts course, participants will understand how tax issues can impact asset-holding strategies involving the UK and offshore trusts, including:

• How Will trusts holding assets can still be useful in the era of transferable nil rate band
• ‘Pilot trust’ structures and why they are now less effective
• Using trusts to mitigate CGT charges
• ‘Tax pool’ problems where discretionary trustees wish to distribute dividend income to beneficiaries
• Use of revocable interest in possessions by discretionary trustees
• Availability of business asset disposal relief to trustees
• The tax advantages of ‘vulnerable beneficiary’ trusts
• The tax charges arising on settlor-interested trusts
• Trust strategies involving offshore bonds
  • Gift and loan trusts
  • Discounted gift trusts
• Why investors may want to use offshore trusts
• ‘Excluded property’ trusts
  • Why they are used in IHT planning by non-UK domiciled people
• How income tax and CGT charges can arise on settlors or beneficiaries of offshore trusts

Our trainer is a Chartered Accountant who qualified with PwC in 1988, spending his last 18 months there in the Tax department. In 1989 he joined a leading financial training company as a tax tutor. Since 1992, he has been self-employed as a Professional Tutor and Training Consultant, specialising in tax update courses for accountants, lawyers and investment managers.

Our trainer has been teaching in the financial services industry since 1994. He has written a textbook on Tax and Trusts for the CII exams and writes regularly for Tax Insider.

Part 1 of this taxation of trusts training course introduces delegates to the main types of UK trusts and their associated tax issues. No previous knowledge of trusts or UK tax is necessary. The course will be of use to those who have limited experience with trust and those who need a refresher in this area. Differences between English and Scottish law will be covered where appropriate.

Part 2 of this taxation of trusts course will build on delegates’ basic knowledge of UK tax and trusts by looking at more complex areas, including various scenarios where trusts can be used in tax planning. The course will contain some short case studies to demonstrate the practicalities involved, as well as several numerical examples.

Those without a good working knowledge of both trusts and UK tax should attend Part I of the taxation of trusts course before attending Part 2.