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Taxation of Trusts

2 Part Course  |  Learn the basics and understand the more complex issues with this taxation of trusts course

Magnificent architecture featuring a sweeping arched ceiling

A one-day course presented over two-half days in a virtual class from 9:30am to 1:00pm UK time

Taxation of Trusts Course: Part 1

The Basics

Legal Background

  • What is a trust?
  • 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

  • Trust courses analyse the impact of the FA 2006 changes on the creation of trusts
  • ‘Qualifying’ IIP trusts:
    • Definition
    • Appointment of assets to beneficiaries
      • On death
      • While 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

  • 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

Taxation of Trusts Course: 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 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

  • Trust courses at Redcliffe Training include ‘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

  • A 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
  • ‘Gift and loan’ trusts:
    • What they are
    • How they are used in IHT planning
  • Discounted gift trusts
  • What they are
  • Why they are less useful than in the past for IHT planning
  • Practical problems and tax traps:
    • Trust courses include a case study on the appropriateness of an investment bond for trustees of an IIP trust

Our taxation of trusts course trainer is a Chartered Accountant who qualified with PwC in 1988, spending his last 18 months within 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 writes regularly for Tax Insider and speaks at conferences of bodies such as the ICAEW and CIOT.

Part 1

Concluding Part 1 of taxation of trusts training, participants will have a good working 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

Concluding part 2 of this taxation of trusts course, participants will understand how tax issues can impact on asset-holding strategies involving 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
  • 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 courses include strategies involving offshore bonds:
    • Gift and loan trusts
    • Discounted gift trusts

  • Redcliffe’s taxation of trusts course leader is a Chartered Accountant with over 30 years of experience in Tax Training.
  • Unlike most tax trainers, he has wide-ranging experience in lecturing across the financial services industry, including for many regulatory examinations.
  • There are many numerical examples included in this taxation of trusts training, to aid understanding of potential tax exposure.
  • Basic tax traps and planning areas are highlighted throughout, along with relevant cases.

Trust taxation courses at Redcliffe Training are delivered in two parts, interactively and via a live, virtual setting. Alternatively, training is offered in-house to you and your team, at your 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 of use to those who have limited experience in trusts and those who need a refresher in this area. Differences between English and Scottish law will be covered where appropriate.

Part 2 builds 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. Our trust taxation courses 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 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 having 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 and 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 R185's was really helpful to learn about as well as considerations to either selling assets within a trust or appropriating/ gifting them to a beneficiary.
Number of places:
Part 1

£ 695.00

Number of places:
Part 2

£ 695.00

Discounts available:
Virtual Class

  • 2 places at 30% less
  • 3 places at 40% less
  • 4 places at 50% less
  • 5 places at 55% less
  • 6+ places at 60% less
  • Select the number of course places and dates to automatically calculate the discount
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