HMRC is seeking views on the taxation of trusts. The Government announced at the autumn Budget in 2017 its intention to open the consultation and invite views on how to make the system simpler, fairer and more transparent.
There have already been some measures taken in respect of the transparency element following the introduction of the Trust Registration Service and the Common Reporting Standard. No specific reforms have been suggested by the Government: it is simply seeking views on the questions in the consultation document, which are based on:
- use of trusts in the UK;
- the principle of transparency in relation to non-resident trusts and whether further measures should be taken to tackle avoidance and evasion;
- the principle of fairness in ensuring trusts offer neither a tax advantage nor disadvantage; and
- the principle of simplicity, particularly in relation to vulnerable beneficiary trusts.
The consultation closes for comments on the extended date of 28 February 2019. Click here to access it.