Trustees have (innocently - for reasons I won’t go into) not paid income tax for over 10 years.
Consequently, beneficiaries have received gross distributions and (hopefully) will have paid income tax without claiming any credits for tax paid by the trustees.
This means that, for the most part, HMRC will have received their tax, it is just that it has been paid by the beneficiaries rather than the trustees.
Do members have any experience or knowledge of HMRC agreeing to set this off (a) within the 4 year timeframe when the beneficiaries can recover overpayments or (b) beyond this by concession?
Time limits are of limited help as, believing there was no liability, the trustees did not file returns.
Osborne Clarke LLP