Taxation of Trusts

Name: Taxation of Trusts - Part 1
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2 Part Course | Learn the basics and master the more complex issues

Magnificent architecture featuring a sweeping arched ceiling

A one-day taxation of trusts course presented over two-half days in a virtual class

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In-house pricing available – often more cost-effective for teams of 10+

Download: Course Outline

Part 1

The Basics

Legal background

What is a trust?
Course on trusts explores the role of the settlor and trustee
Overview of discretionary, interest in possession (IIP) and bare trusts, including why they are used
Key advantages of charitable trusts
The main provisions of the Trustee Act 2000

Trustees’ powers

Powers of investment
Appointment of agents
Policy statements

CGT of Trusts

Tax charges on creation
Disposals by trustees to beneficiaries or third parties
Importance of holdover relief
Clogged losses

Inheritance Tax of Trusts

The impact of the FA 2006 changes on the creation of trusts
‘Qualifying’ IIP trusts

Definition
Appointment of assets to beneficiaries

On death
While the life tenant is alive

Non-qualifying IIP trusts and discretionary trusts

Appointment of assets to beneficiaries

Exit charges and 10-year charges (overview only)

IHT-efficient trusts for children

Trust for a Bereaved Minor
18-25 trusts

Income Tax Charges on Trustees and Beneficiaries

Trust courses at Redcliffe Training include the different rules and tax rates for IIP and discretionary trusts
Importance of the R185 form
Availability of personal savings allowance, etc.
‘Tax pool’ issues for discretionary trustees

How making distributions may increase the trustees’ tax charge

New rules for low-income trusts from 2024/25

Part 2

Understanding More Complex Issues

CGT of Trusts

Business asset disposal relief – availability to trustees
Using lifetime trusts to defer CGT charges
- Case study on the CGT when winding up a trust

Inheritance Tax of Trusts

Transferable nil rate band (NRB) and impact on Will trusts
Impact of trusts on the availability of Residence NRB
‘Pilot trust’ structures

What they are
F(No.2)A 2015 changes to the tax rules

Income Tax Charges on Trustees and Beneficiaries

Our trust course online and in-person covers ‘tax pool’ issues for discretionary trustees

How making distributions may increase the trustees’ tax charge
Use of revocable interests in possession

Trustee residential landlords

The different rules on the restriction of finance costs for IIP and discretionary trusts

Other Trusts

Trusts for vulnerable beneficiaries
Settlor-interested trusts

Investment Bonds Held in Trust

Brief overview of investment bonds
- Why invest in them?
- Tax rates applying
Who is liable for any tax charge on bonds held in trust?
- Settlor, trustees, beneficiary or no one, depending on circumstances
‘Gift and loan’ trusts
- What they are
- How are they used in IHT planning?
Discounted gift trusts
What they are
Why are they less useful than in the past for IHT planning?
Practical problems and tax traps
- Courses on Trusts include a case study: The appropriateness of an investment bond for trustees of an IIP trust

Trust courses at Redcliffe Training are led by a Chartered Accountant who qualified with PwC in 1988. Here he spent 18 months within the Tax department.

In 1989, our specialist 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 taxation of trusts course expert has been teaching in the financial services industry since 1994. He writes regularly for Tax Insider and speaks at conferences of bodies such as the ICAEW and CIOT.

Part 1

Participants attending trust taxation courses will gain knowledge of:

The different types of trust 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

Participants will understand how tax issues impact asset-holding strategies involving UK 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
Income tax issues for trustee residential landlords
‘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

Trust taxation courses are delivered by a Chartered Accountant with over 35 years’ experience in Tax Training
Unlike most tax trainers, our specialist has vast experience in lecturing in the financial services industry, including for many regulatory examinations
Many numerical examples will aid your understanding of potential tax exposure and are included in our trust courses
Basic tax traps and planning areas are highlighted throughout, along with relevant cases

Delivered online and in two parts, Redcliffe Training’s courses on trusts are interactive and presented live in a professional and virtual setting. In-house options include tailoring and are available to you and your team on request.

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

Part 2 of our trust courses builds on the participants' basic knowledge of UK tax and trusts by delving deeper into more complex areas. The latter includes various scenarios where trusts can be used in tax planning. Sessions contain some short case studies, demonstrating the practicalities involved as well as several numerical examples.

Those without a good working knowledge of both trusts and UK tax should attend Part 1 of the course before attending Part 2.

Well-spoken and easy to follow. Kept on topic and easy to understand.
The Trainer described each section of the course with the help of slides. It was good to have examples included.
The instructor was well-versed and was able to articulate complicated points effectively and simply. I enjoyed that the course was split over 2 days.
We deal with the administration of trusts, so it was helpful to learn about events which may trigger a tax liability - we would usually instruct an account to prepare any returns. However, for planning purposes and general administration, issues such as VPEs & issuing R185S were really helpful to learn about, as well as considerations to either selling assets within a trust or appropriating/ gifting them to a beneficiary.
The highlight of the course was listening to the trainer. I have attended his lectures in the past. I always learn something new from the trainer, so thank you. I have quite a few trust clients, so the trainer's wonderful lecture will help me tremendously. Please pass on my sincere thanks to the trainer for guiding us all through this tricky subject matter.
Very good course. It was most helpful, thank you.
We are getting an increasing number of Trust queries, and this will help me to respond with confidence and certainty. I particularly liked the format, which set itself apart from the usual webinar format.

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(min. 50 participants)